Markets Right Now: Stocks drop, led by technology companies

Markets Right Now: Stocks drop, led by technology companies

Markets Right Now: Stocks drop, led by technology companies

The benchmark S&P 500 index tumbled more than 1 percent on Thursday, only the third time this year it has fallen that much, while the Nasdaq shed more than 2 percent. The Dow slid 33.08 points, or 0.2 percent, to 22,085.34. On Monday, the S&P 500 and Dow closed at record highs.

The Nasdaq composite fell 13.31 points, or 0.2 percent, to 6,370.46. It was gold's highest settlement since June 7. The yield on the 10-year Treasury note rose to 2.27% from 2.26%.

By 4.10pm, the fall was hovering between 99 and 100 points - around 1.34% - down.

Investors are losing enthusiasm for Canada's banking stocks as a slowdown in the country's housing market dents banks' growth prospects, with insurance companies seen as a better bet to benefit from higher interest rates.

"When President Trump declared that the USA is "locked and loaded should North Korea act unwisely", investors became even more fearful".

"That may have weighed a little bit" on markets, said Phil Guarco, global investment specialist at J.P. Morgan Private Bank. Major indexes in Asia closed lower.

In an apparent response to Trump's tweet, a statement issued by North Korea's official KCNA news agency claimed the president is "driving the situation on the Korean peninsula to the brink of a nuclear war".

The CBOE Volatility Index, better known as the VIX and the most widely followed barometer of expected near-term stock market volatility, rose the most in about 12 weeks.The index ended up 4.93 points at 16.04, the highest level since November 8, when Trump was elected president.

White House: Donald Trump and Emmanuel Macron on growing North Korea's threat
The statement said that the United States and allies were ready to apply the full range of diplomatic, economic, and military measures to end any threat.

IN A SKID: Avis Budget Group slumped 6.8% to $31.13 after the auto rental company cut its guidance following a weak second quarter. Walt Disney stock paced the 14 losers, dropping 3.9%, while McDonald's finished flat.

Shares of SeaWorld Entertainment Inc. slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations.

LOOKING GOOD: Michael Kors climbed 21.9% to $45.40 after the luxury handbag and apparel designer and retailer posted quarterly results that beat analysts' forecasts as sales improved.

In the next part, we'll discuss the S&P 500's top performers on August 8.

Materials, a sector that includes gold producers and other resource-based companies, was the lone gainer among the index's 10 main sectors, rising 0.7 per cent.

Stocks are ending broadly lower on Wall Street, led by declines in technology companies and banks, two of the highest-performing sectors over the past year. Its shares slid $9.77, or 5.3 percent, to $174.02. Brent crude, used to price global oils, declined 29 cents to $51.61 per barrel in London. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman all rose, with the Dow Jones US defense index up 1.48 percent at 409.58.

Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce. The contract fell 97 cents, or 2 per cent, to close at $48.59 a barrel on Thursday.

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