Wall Street falls on ramp-up of USA tension with North Korea

Saturday, 12 Aug, 2017

The dollar index, which tracks the greenback against six rival currencies, was down 0.17 percent to 93.391.

Geopolitical risks can boost demand for assets considered safe-haven investments, such as gold.

Among other markets, oil prices advanced after a US Department of Energy report showed lower oil inventories. Is that a reason to be?

The back-and-forth came on the heels of reports the US intelligence community has determined North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles. The S&P is looking at a decline of 1.3%, its worst week since March.

Australian shares were down 1.3%, set for a weekly loss of 0.6%.

Investors were also hesitant about buying smaller companies as the Russell 2000 index was down 0.05 percent on Friday, and was more than 5 percent off its July 25 record close. He added that, "The great leaders I've seen don't threaten unless they're ready to act, and I'm not sure President Trump is ready to act".

"This is not the first time the markets are playing the off-again, on-again scenario", said analyst Naeem Aslam at Think Markets, that's why the uncertainty in equities has eased down faster, especially if compared to yesterday's sell off.

Later on Friday, investors will look to US July consumer price data for hints on the Fed's policy outlook and near-term moves in the dollar.

"Should we see another dip in inflation in July, it could make the job of building a consensus for another rate hike this year more hard".

Most large-cap stocks fell across the board. Some say expectations for its server-chip business were just too high (http://www.marketwatch.com/story/nvidia-stock-could-pause-as-server-growth-slows-down-2017-08-10). Over the next three months, the average gain has been good but not great - +1.15%.

The dollar fell against the yen, as the conflict between the United States and North Korea continues.

US crude CLc1 was unchanged at $48.59 per barrel and Brent LCOc1 was last at $51.84, down 1.63 percent on the day. An actual military strike by North Korea on an American target would have economic as well as geopolitical repercussions, Boydston said. This suggests that the currency is starting to recover following the events that occurred between the US and North Korea this week.

Trump's threat earlier this week, to unleash "fire and fury" on Pyongyang if it attacked, was ultimately dismissed as bluster by many investors.

Blue Apron slumped as much as 19.1 percent to a record low after the meal-kit delivery service provider reported a bigger-than-expected loss in its first quarterly report as a public company.

Almost $1-trillion has been wiped out from global equity markets since tensions were sparked off by Trump's "fire and fury" comments on Tuesday.