Market news
10.08.2017, 20:07

The main US stock indices fell significantly as a result of today's trading

The main US stock indexes finished trading in negative territory, as investors were concerned about tightening tensions between the United States and North Korea.

Yesterday, officials of the DPRK declared their readiness to strike a missile strike at the US Air Force base on the island of Guam, located in the Pacific Ocean, if such a decision was made by the head of state. These comments are North Korea's response to Trump's statements, which demanded that North Korea stop "further threats" and warned that the US would respond with "the fire and fury that the world has never seen." Meanwhile, today North Korea rejected Trump's comments as a "load of nonsense" and said that in a few days she would outline a plan for a missile strike near Guam. As explained in Pyongyang, the military is developing a plan to launch four medium-range missiles in the direction of Guam. According to the commander of the strategic forces of the DPRK, this will be a "strike-warning": In response, President Trump noted that "perhaps a warning that the US will respond with" fire and fury "on threats from North Korea was not tough enough" .

In addition, the pressure on the indices was provided by the US statistics. The Ministry of Labor reported that the number of Americans applying for unemployment benefits rose unexpectedly last week, but the main trend remained in line with the tightening of the labor market. Initial claims for unemployment benefits increased by 3000 to 244,000, taking into account seasonal fluctuations for the week ending August 5. However, producer prices in the US unexpectedly fell in July, recording their biggest decline in almost a year, which was caused by lower costs for services and energy. The Ministry of Labor reported that the producer price index for final demand fell by 0.1% in July, having replaced growth by 0.1% in June. The July recession was the largest since August 2016.

Almost all components of the DOW index recorded a decline (26 out of 30). Outsider were shares Apple Inc. (AAPL, -3.59%). The leader of growth was the shares of McDonald's Corporation (MCD, + 1.23%).

All sectors of the S & P index finished trading in the red. The greatest decrease was shown by the technological sector (-1.7%).

At closing:

DJIA -0.91% 21.848.94 -199.76

Nasdaq -2.13% 6,216.87 -135.46

S & P -1.44% 2.438.28 -35.74

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