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Overnight Markets: Wall Street swings lower on North Korea fears

Ten out of the 11 major S&P 500 sectors fell with the only gains seen in the utilities sector.

Overnight Markets: Wall Street swings lower on North Korea fears

Wall Street declined on Tuesday after a late afternoon selling spree in response to President Donald Trump’s statement saying North Korea "will be met with fire and fury" if it threatens the US.

The Dow Jones Industrial Average fell 33 points, or 0.15%, at 22,085, snapping a 9-day streak of closing records. The S&P 500 lost six points, or 0.24%, to close at 2,475 and the Nasdaq Composite dropped 13 points, or 0.21%, to 6,370.

Wall Street’s three major indexes dipped after Trump vowed to respond aggressively to any threats from North Korea.

Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programmes as Pyongyang's continues missile and nuclear tests in defiance of UN sanctions.

Ten out of the 11 major S&P 500 sectors fell after the comments with the only gains seen in the utilities sector. Utilities closed up 0.3% while the materials sector was the S&P's biggest loser with a 0.9% drop.

The financial sector index erased gains after news California insurance regulator will probe whether Wells Fargo & Co (WFC.N) and an insurance company harmed residents by selling insurance they did not need. Wells Fargo still ended up 0.3%.

Shares of Michael Kors (KORS.N) ended up 21.5%, after the luxury goods maker raised its full-year revenue forecast. Ralph Lauren stock climbed 13%, after the firm reported profit of $59.5 million (£47.8m) in the quarter.

Hotelier Marriott International slumped more than 2%, a day after the firm said it expected limited growth in North America in coming months.

In Asia, most stock indexes were pressured as geopolitical tensions re-entered the spotlight on Wednesday and China consumer inflation missed expectations.

Japan's Nikkei 225 was down 1.25% and South Korea's Kospi declined 0.68%.

Australia's benchmark S&P/ASX 200 index bucked the trend to climb 0.52%, driven by gains in its heavily-weighted financials sub-index, which rose 0.8%.

Hong Kong's Hang Seng Index was off 0.09%. Mainland markets also traded below the flat line, with the Shanghai Composite slipping 0.18% and the Shenzhen Composite lower by 0.14%.

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FTSE rebounds as China-US trade fears pause

by Michelle McGagh on Jun 20, 2018 at 16:44

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