US indexes all ended lower in a broad-based sell-off sparked by any number of worries from threat of North Korea, rising government bond yields and recent soft economic data from the US through to the hawkish strains from global central banks.
The Dow closed down -158 points or -0.74% while the S&P 500 extended losses declining -22 points or -0.94%. Nasdaq reversed Wednesday's gains dropping -61 points or -1%.
Government bond yields ramped up globally (bond prices move inversely to yields) as investors responded to central bank hints of tightening monetary policies. The benchmark 10 year Treasury hit a new high to 2.369%.
- Dow 21,320 -0.74%
- S&P 500 2,410 -0.94%
- Nasdaq 6,089 -1%
- Russell 2000 1,401 -1.36%
- NYSE Composite 11,702 -0.91%
- Gold 1,224 +0.11%
- Oil WTI $45.38 -0.31%
- 10-Year Treasury Yield 2.36% 0.046
North Korea: speak softly and carry a big stick
North Korea's intercontinental ballistic missile (ICMB) test provoked a response from President Trump widely reported in the press that he was considering "some pretty severe things".
However, President Trump and his administration appeared to take a step back late on Thursday to suggest that diplomacy would take the lead in resolving the crisis.
Although Defense Secretary Jim Mathis was reported to say, according to the Wall Street Journal, that the military "remains ready" but noted that the US was not closer to war.
The successful launch of North Korea's first ballistic missile capable of reaching US shores caused consternation and the threat of reprisals in the form of sanctions from the US and its allies.
Tesla and Under Armour: Little protection
Under Armour, performance apparel company, saw its share price sink -6.37% after analysts have rated the company underperform on among other things "its dramatically slowing revenue growth due to growing fashion risks" and its "rich valuation".
Adding to its woes, an analyst from Eagle Alpha, was also reported in the Street.com, sa saying the company's search interest" continued in a "steep downtrend".
Tesla stock price, meanwhile, also dropped -5.58% as the automotive company announced its Q2 sales of two models were lower than expected due to a shortfall in production of battery packs.
In addition, the competitive landscape is shifting for Tesla after Volvo announced it was focusing on electric vehicles.
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