Market Recap for Thursday, August 10th, 2017
We knew it was coming.
After days of low volatility and small moves in the indices, we were due for a breakout in either direction. And today was the day.
Opening the session lower, stocks continued their slide in the morning. Stocks were sideways midday, but the sell off resumed in the afternoon. In fact, almost all of today's losses were from the first hour and the last hour of the trading day.
Today's losses were another reaction to the escalating situation between the U.S. and North Korea.
Early this morning, North Korea revealed a detailed plan to launch ballistic missiles at Guam, a U.S. territory with military bases. After the announcement, Japan and South Korea claimed there would be a strong reaction if North Korea carries through with the threat.
Then later today, President Trump said that maybe his latest "fire and fury" warning wasn't strong enough. Today Trump said that North Korea "better get their act together or they are going to be in trouble like few nations have ever been in trouble." Stocks slide to session lows after Trump's comments.
With the biggest drop since MAY, stocks finished lower for the 3rd day straight.
The DOW ended with a 205 point loss - the first triple digit loss for the DOW in over 3 months. But the NASDAQ was the biggest loser, leading the major indices with a 2.1% decline.
Here's where the major indices ended the day:
- The S&P finished with a 1.5% loss. Down 36 points, the S&P ended at 2,438.
- The DOW ended 0.9% lower. Dropping 205 points, the DOW closed at 21,844.
- The NASDAQ was down 2.1%. With a 135 point loss, the NASDAQ finished at 6,217.
Crude Oil (CL) opened higher and then reversed, finishing the day at lows of the session. Down 2.1%, CL ended at $48.54 a barrel.
With ongoing U.S./North Korea concerns and today's sell off, the VIX (aka Fear Index) increased 44.4% and jumped to a 4-month high.
Gold (GC) was a winner for the 2nd day in a row. Up another 0.9%, GC finished at $1290.2 an ounce with its best close in over 2 months.
Tomorrow's economic calendar is active with CPI Data at 8:30am ET, FOMC Member Kaplan Speaking at 9:40am ET, and FOMC Member Kashkari Speaking at 11:30am ET.
This Week's Economic Calendar
Real Time Economic Calendar provided by Investing.com.
Have a great trading week!