USA stocks close lower, ending Dow's 10-day winning streak

By Saikat Chatterjee

By Saikat Chatterjee

Japanese markets were closed for a holiday.

Gold futures surged Wednesday, logging their best one-day gain since May, as the USA and North Korea exchanged threats.

"Of course it's all come at a time when share markets are due for a correction so North Korea has provided a flawless trigger". Despite the recent depreciation, the Kiwi Dollar is ahead by more than 5% since the beginning of the year, and moving off a multi-year high at $0.7557.

Mr. Trump's threatening rhetoric on North Korea "is nearly entirely responsible for the pullback", said Randy Frederick, vice president of trading and derivatives for Charles Schwab.

Investors flocked to gold Wednesday against the backdrop of rising tensions between the US and North Korea, offsetting some of the broad-based declines on the commodity-heavy Toronto stock index.

S&P futures fell 0.2 percent while Dow futures also lost 0.2 percent.

The Nasdaq composite slumped 135.46 points, or 2.1 percent, to 6,216.87. The slide deepened after Mr Trump's remarks on North Korea aired. It is now on track for its biggest weekly drop since the week before the November 8 US presidential election.

The CBOE Volatility Index, the most widely followed barometer of expected near-term US stock market volatility, hit its highest mark since November 8, when Trump was elected president. The index closed at 16.04 overnight, the highest level since November 8, when Trump was elected president.

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.

US stocks opened higher on Friday after suffering their worst single-day losses since mid-May on Thursday.

A statement from the North Korean military called President Donald Trump's warning that the communist nation would face "fire and fury" if it continued its provocations a "load of nonsense". The U.S. currency was down 0.3 percent at 109.94 yen, following a retreat to 109.740, its weakest since June 15.

Japan is the world's biggest creditor country and there is an assumption investors there will repatriate funds in a crisis.

In overseas trading, stock markets across the Asia-Pacific region saw further downside during trading on Thursday. It was up about 2 percent for the week so far. They were at 2.201 percent on Friday.

The single currency slipped 0.3 percent to $1.1723 and was holding just above a July 28 low of $1.1688.

Asian markets continued to fall on Thursday (http://www.marketwatch.com/story/asian-markets-continue-to-fall-after-wednesdays-selloff-2017-08-09), with losses of over 1% for the Hong Kong Hang Seng Index.

Kohl's stock dropped almost six percent despite better than expected earnings.

Consumer-focused stocks, media companies and banks accounted for much of the market decline.

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