Today’s Trading Activity – Talks of “Fire and Fury” Enough To End the Dow’s Win Streak
Aug 8, 2017
The Dow’s recent record-run ended Tuesday as geopolitical tensions between the U.S. and North Korea flared. The major stocks indices reached their intraday lows just before the close and just after President Trump issued a grim warning to North Korea. The President said, “North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen.” The warning escalated an already tumultuous situation. Just hours before, it was reported that U.S. intelligence officials had concluded North Korea has developed missile-ready nuclear warheads. Less than a day earlier, North Korea said it “will, under no circumstances, put the nukes and ballistic rockets on the negotiating table,” and that they would “teach the US a severe lesson” should the U.S. attack. The Dow slipped 0.2% to break its ten-day win streak, which included nine new record highs. The tensions also gave gold a modest boost. Treasury yields outside of five years remained higher for the day but completely erased an early morning rise that followed the solid U.S. JOLTS labor report. The Dollar also responded positively to the JOLTS data and was hardly impacted by the President’s comments.