Stocks finish lower on Thursday as North Korean tensions weigh.
U.S. stocks declined on Thursday, with the Dow shedding as much as 281 points after President Trump cancelled a planned meeting with North Korean leader Kim Jong-un.
The Dow Jones Industrial Average (NYSEARCA:DIA) declined 75.05 points, or 0.3%, to 24,811.76. The large-cap S&P 500 Index (NYSEARCA:SPY) fell 0.2% to 2,727.76. The tech-driven Nasdaq Composite Index (NYSEARCA:QQQ) pared losses to close at 7,424.43, where it was virtually unchanged.
Implied volatility, as measured by the CBOE VIX (NYSEARCA:VXX), rose more than 4% before backtracking later in the session. The VIX closed at 12.53, where it was virtually unchanged.
President Trump confirmed on Thursday he will not be meeting with Kim Jong-un next month, citing “anger and open hostility” on the part of the North Korean leader.
In a letter to Kim, President Trump wrote: “I felt a wonderful dialogue was building up between you and me, and ultimately, it is only that dialogue that matters. Some day I look very much forward to meeting you.”
Geopolitical shockwaves sent gold prices soaring as investors turned to safe-haven assets. Gold futures rose above $1,300 a troy ounce for the first time in over a week, hitting a session high of $1,311.40 on the Comex division of the New York Mercantile Exchange.
In economic data, U.S. jobless claims rose more than expected last week, though the overall picture continued to show an improving labor market. The number of Americans filing for first-time unemployment benefits rose by 11,000 to a seasonally adjusted 234,000 in the latest week, Labor Department data showed.
The Final Word: Geopolitical tensions threaten to unwind Wall Street’s recent bout of good fortune. Combined with rising interest rates, this could provide a murky climate for risk-seeking investors.