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US:Dow slips 100 points as tensions with N Korea escalate

Thursday, August 10, 2017 - 22:25

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At 9:38 a.m. ET (1338 GMT) the Dow Jones Industrial Average was down 85.43 points, or 0.39 percent, at 21,963.27, the S&P 500 was down 10.31 points, or 0.42 percent at 2,463.71. SOURCE: AFP

[WASHINGTON] The Dow lost some 100 points on Thursday as investors fretted over escalating tensions between the United States and North Korea.

North Korea on Thursday outlined details for a missile strike near the US territory of Guam, adding fuel to rising tensions with the United States.

The latest tensions began after US President Donald Trump on Tuesday warned North Korea that it would face "fire and fury" if it threatened the United States.

All the 11 major S&P indexed were lower, with technology sector's 0.62 per cent leading the decliners.

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At 9.38 am ET (1338 GMT) the Dow Jones Industrial Average was down 85.43 points, or 0.39 per cent, at 21,963.27, the S&P 500 was down 10.31 points, or 0.42 per cent at 2,463.71.

The Nasdaq Composite was down 37.30 points, or 0.59 per cent, at 6,315.03.

"There seems to be a heightened fear of an escalation," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

With Japan and South Korea also warning North Korea, investors are taking a step back to see what is happening before chipping in back, Bakhos said.

Safe-haven assets such as gold and the Swiss franc were again in favor. Gold hit a two-month high of US$1,278 an ounce amid the nervousness.

Retail results are also on investors' mind as the second-quarter earning season winds down.

Shares of Kohl's were down 8.4 per cent, while Macy's fell 4 per cent after the department store operators reported a fall in sales.

Blue Apron shares hit a record low at US$5.03 after the meal-kit delivery service provider reported a bigger-than-expected loss in its first quarterly report as a public company.

REUTERS

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