Tuesday was the biggest single day for losses in three weeks on Wall Street, with US stocks and the S&P 500 sharply falling.
Geopolitical tensions between North Korea and the US together, Japan and other allies as North Korea conducted their sixth nuclear test resulting in an earthquake had markets nervous.
Dragging down the Dow was Goldman Sachs’ shares which fell 3.6 percent with the Dow Jones Industrial Average falling 1.07 percent or 234,25 points to 21,75331.
After a record closing high on Friday, the S&P 500 fell 0.76 percent or 18.7 points to 2,457.85, with JPMorgan and Bank of America shares falling over 2 percent.
The Nasdaq Composite fell 0.93 percent or 59.76 points to 6,375.57.
The Volatility index gained 2.10 points to 12.23, a barometer which indicates volatility in the stock market in the near-term.
North Korea – Market Sell Offs
Commenting on the latest developments, VP of Global equity research at Bel Air Investment Advisors in LA, Aaron Jett said that over the last few months the biggest reaction to the markets is the North Korea geopolitical tensions. With sell offs when there are scary headlines, with no data or earnings.
Hurricane Harvey’s devastating aftermath in Texas also affected the markets. Also investor’s nerves were heightened with another powerful storm, Hurricane Irma which is headed for Florida as shares tumbled in home insurers.
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