Major equity indexes in the U.S. started the day under pressure as the escalating tensions between North Korea and the United States force investors to seek safe-haven assets such as the JPY and gold.
Commenting on the risk aversion, "when you have a market like we have had this year, and it has been amazingly calm, and you introduce a major source of uncertainty, there is bound to be some reaction," Brad McMillan, chief investment officer for Commonwealth Financial, told Reuters. The CBOE Volatility Index .VIX, a popular gauge of stock market volatility, jumped to a near three-month high of 15.36 on Thursday.
- US-North Korea tensions remain escalated – BBH
- Rates: US-North Korea tensions are driving the markets - Rabobank
Moreover, dismal earnings results from big retailers Macy's and Kohl's also weighed on the stock markets. As of writing, the S&P 500 was at 2,444.50, down 1.15%, the Dow Jones Industrial Average was at 21,889,82, losing 0.72%, and the Nasdaq Composite was at 6,240.77, dropping 1.76%.
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