USA stocks tumble on North Korea worries

Political tensions continue to weigh on world stocks

Political tensions continue to weigh on world stocks

After North Korea claimed Trump is "driving" the Korean peninsula to the "brink of a nuclear war", the president responded with a tweet suggesting the United States is prepared to take military action against the communist nation.

The one-upmanship in the "war of words" between Donald Trump and Kim Jong-un came to accelerate the fall of the stock market. The fall of the S&P 500 has been higher, at 1.5 %, most felt still for the Nasdaq, technology stocks losing 2.1% on the session.

The Dow Jones Industrial Average rose 43 points, or 0.2%, to 21,885, led by Apple Inc.

Geopolitical concerns continued to weigh on Wall Street amid an ongoing escalation in tensions between the USA and North Korea.

North Korea claimed "only absolute force" can work on someone as "bereft of reason" as Trump and detailed plans to fire a salvo of missiles into waters around the US Pacific territory of Guam. He assured that the "people of our country are safe, our allies our safe".

"A pullback is good so the market doesn't get unidirectional".

The focus on North Korea largely overshadowed a Labor Department report showing an unexpected drop in U.S. producer prices in the month of July.

The Labor Department said its consumer price index inched up by 0.1 percent in July after coming in unchanged in June. Core prices had been expected to rise by 0.2%.

Jose Mourinho looking for more goalscorers at Manchester United
Mourinho believes United are capable of winning a title in his second season, but is not kidding himself over the challenge that awaits them domestically. "I will just go with everything I have to try to win every match we play".

On the USA 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. South Korea's Kospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent.

Still, the S&P 500 is on track to post its biggest weekly loss in about nine months. It's also called the fear index. The index had its biggest drop since mid-May a day earlier.

The recovery fit a recent pattern of investors using dips to put more money in stocks.

Declining issues outnumbered advancers on the NYSE by 1,339 to 865.

The price of crude oil dropped more than two percent Thursday, the cost of a barrel falling to $48.49. The euro rose to $1.1824 from $1.1774.

After touching a more than two-month high, spot gold last added 0.3 percent to $1,290.00 an ounce. Japan was closed on a public holiday. Instead, he said his statement "maybe wasn't tough enough". He said that North Korea "can be very very nervous" if it acts on either the USA or its allies, and warned that "things will happen to them like they never thought possible". And when the S&P 500 breaks a streak of 50+ trading days without a 1%+ up move, the index actually averages a decline over the next month and a gain of just 0.86% over the next three months.

In other energy futures trading, wholesale gasoline rose 1 cent to $1.61 a gallon, while heating oil was little changed at $1.63 a gallon.

Seoul shares hit 11-week low amid selling by foreign investors following Trump's fresh warning to North Korea. For the week, the index lost over 3% to register its biggest weekly loss since February of 2016.

Simmering North Korea tensions knock back Wall Street
Stocks saw some strength during trading on Friday, regaining ground following the sell-off seen in the previous session. Travel website operator Priceline Group Inc fell 6.9% after a disappointing financial forecast.

Wall Street put a floor under global equities on Friday after a weak inflation reading brought investors back into US stocks even as tensions between the United States and North Korea continued to escalate, though the geopolitical fears still drove safe-haven buying of gold and the yen. Germany's DAX was flat, while France's CAC 40 fell 1.1 percent.

Commodity-related stocks are among the worst performers against the backdrop of heightened political uncertainty after Trump further ratcheted up the rhetoric.

The data comes amid tepid inflation that has remained below the Fed's 2 percent target, despite low unemployment.

The consumer price data, which pointed to weak inflation, could cause the Federal Reserve to hold off from raising rates again this year.

A report released by the Labor Department showed a modest uptick in consumer prices in the United States in the month of July.

A slight rise in a measure of USA consumer prices pointed to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year, which would be favorable to equity investors. Lam Research Corp. climbed $4.82, or 3.2 percent, to $154.26.

On Friday, fellow retailer J.C. Penney dropped 16% after its second-quarter loss exceeded expectations.

Meanwhile, the Russell 2000 index of small-cap stocks looked poised for a weekly drop of almost 3%, its biggest one-week decline since February 2016. The company also said sales at its established stores declined for the fourth straight quarter.

Pressure on Guardiola, Mourinho to deliver on investment
Paul Pogba admits that Manchester United need to be "winning everything" if they are to be considered "big" again. Both Guardiola and Mourinho could argue that their first seasons were transitional campaigns.

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