The north Korean crisis comes to Wall Street

At 9:38am ET the Dow Jones Industrial Average was down 85.43 points or 0.39% at 21,963.27. The AFP

Political tensions continue to weigh on world stocks

The markets may benefit from bargain hunting, as some traders look to pick up stocks at reduced levels following the pullback seen over the past few sessions.

Trump, whose threat this week to bring "fire and fury" was dismissed by North Korea, said Thursday that statement might not have been "tough enough".

"I'll tell you why, and they should be very nervous".

An Associated Press report that the USA and North Korea have been engaged in back channel talks (https://apnews.com/686ac7c761694b28b67793a1d8297145?link=mktw) for several months even as they exchange incendiary threats may also help to soothe jitters.

"Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

The one-upmanship in the "war of words" between Donald Trump and Kim Jong-un came to accelerate the fall of the stock market.

On the US economic front, a report released by the Labor Department showed a modest uptick in consumer prices in the U.S.in the month of July.

"We have not had a 5 percent correction since June 2016".

Pedro injury blow for Chelsea ahead of Burnley match
Speaking in an exclusive interview with ESPN FC, the BT Sport pundit said: "The mentality has got to improve". " Chelsea are weaker than last season - no Diego Costa , no Matic - and I'm concerned for them".

Burnley 3-2 Chelsea: Reigning Premier League champs shocked in opening game
Speaking in an exclusive interview with ESPN FC, the BT Sport pundit said: "The mentality has got to improve". I have to try to adapt a new system and to anticipate playing with nine or 10 men in the next game.

Gary Neville: 'Chelsea boss Antonio Conte not happy with Nemanja Matic sale'
Chelsea have signed Tiemoue Bakayoko as a replacement, although the France worldwide will miss the start of the season through injury.

The rouble was little changed at 60.1 against the dollar and firmed 0.05 percent to 70.7 versus the euro.

Earlier stocks caught a bid after the Labor Department said the Consumer Price Index edged up 0.1 percent last month, versus expectations of a 0.2 percent gain.

Trucking and software stocks are also seeing notable strength in mid-day trading, while steel stocks have moved sharply lower on the day. Those losses put the S&P 500 on track to close with a weekly decline of 1.4%, its worst such showing since the week ended March 24.

Currently, the major averages remain in positive territory but off their best levels of the day.

The Dow Jones Industrial Average closed down 204.69 points, or 0.93 percent, at 21,844.01, the S&P 500 lost 35.81 points, or 1.45 percent, to end the session at 2,438.21 and the Nasdaq Composite fell 135.46 points, or 2.13 percent, to 6,216.87.

Apart from geopolitical worries, some technical analysts like Tom McClellan, editor of the McClellan Market Report, blamed seasonality for this week's sharp retreat given August's record as a weak month for stocks. Hong Kong's Hang Seng Index plunged by 2 percent, while South Korea's Kospi Index slumped by 1.7 percent.

Overnight, Wall Street closed sharply lower after Trump, with fiery rhetoric, warned Pyongyang against attacking Guam or United States allies after it disclosed plans to fire missiles over Japan to land near the U.S. Pacific territory. While the German DAX Index closed just below the unchanged line, the UK's FTSE 100 Index and the French CAC 40 Index both tumbled by 1.1%.

The price of crude oil dropped more than two percent Thursday, the cost of a barrel falling to $48.49. Meanwhile, after jumping $10.80 to $1,290.10 an ounce in the previous session, gold futures are climbing $6.50 to $1,296.60 an ounce.

Latest News