Stocks fall after US cancels North Korea summit

People watch a television news report showing pictures of US President Donald Trump (L) and North Korean leader Kim Jong Un at a railway station in Seoul on March 9, 2018.

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People watch a television news report showing pictures of US President Donald Trump (L) and North Korean leader Kim Jong Un at a railway station in Seoul on March 9, 2018.
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JUNG YEON-JE/AFP/Getty Images

Stocks closed lower Thursday as heightening tensions between the US and North Korea spooked markets. Gold spiked, and oil fell. The 10-year Treasury yield slipped below 3%.

Here’s the scoreboard:

Dow Jones Industrial Average: 24,817.33 −69.48 (-0.28%)

S&P 500: 2,726.65 -6.64 (-0.24%)

AUD/USD: 0.7577 0.0013 (+0.17%)

ASX 200 SPI futures: 6,010.0 -12.5 (-0.21%)

  1. Trump canceled a planned summit between the US and North Korea. Trump cited “open hostility” in a recent Pyongyang statement as he scrapped the high-stakes meeting. Defense stocks rallied following the news.
  2. The Justice Department reportedly opened a criminal investigation into market manipulation of cryptocurrency prices. Bloomberg reported the Justice Department is working with the Commodity Futures Trading Commission in the probe.
  3. The US imposed sanctions on nine individuals and companies accused of setting up companies to procure aircraft parts to Iran. Among those sanctioned are Iran-based Blue Airways and Turkey-based Otik Aviation, the Treasury Department said.
  4. The residential real-estate market slowed down last month. Existing home sales shed 2.5% in April to 5.46 million, the National Association of Realtors said.
  5. Trump is considering slapping hefty taxes on imported cars and trucks. The US’s closest allies could hurt the most from US auto tariffs.
  6. Deutsche Bank is axing 7,000 investment banking jobs. The broad restructuring will reduce global head count to 90,000.

Here is the upcoming economic calendar:

  • The UK releases GDP numbers.
  • The US reports core durable goods.
  • Federal Reserve Chair Jay Powell speaks.