US markets weak; Dow loses over 200 points
Markets in US witnessed a dip on Tuesday’s trade as tensions between North Korea and West created volatility in the US market.
The Dow Jones industrial average recorded its biggest one-day drop since Aug. 17, falling 234.2 points to close at 21,753.31. The S&P 500 pulled back 0.8% its worst day since Aug. 17 to 2,457.07, with financials posting their worst day since May 17. The S&P also snapped a six-day winning streak.
The Nasdaq composite declined 0.9% to close at 6,375.57 as shares of Apple, Amazon, Facebook and Alphabet all dropped.
North Korea successfully tested a hydrogen bomb that can be mounted onto an intercontinental ballistic missile. This was North Korea’s sixth nuclear test since 2006 and its most powerful to date.
The US stock market was closed on Monday because of the Labour Day holiday, but futures fell along with global equities.
Tension between the US and North Korea has been escalating recently. Last month, Trump said threats out of North Korea “will be met with fire and fury.” Last week, North Korea launched a missile that flew over Japan before falling into the sea. That said, stocks posted solid gains last week.