Federal Hall's George Washington statue stands near the flag-covered pillars of the New York Stock Exchange.
The Russell 2000 index of smaller-company stocks gave up 19 points, or 1.4 percent, to 1,377. The stock fell $2.25 to $20.79. In the wake of new developments, the dollar index weakened, giving up on some of the strong gains following an upbeat JOLTS report yesterday.
Put simply, the three nations that flank South Korea across a 1300 mile crescent probably face a far greater threat than the USA, simply because their proximity makes the success of an attack so much greater. "The global economy is really on some firm footing", he said.
At the close trading in NY, the Dow Jones Industrial Average was down 204.69 points, or 0.9%, to 21,844.01, its biggest one-day fall since May 17.
Despite the spike, broader market volatility was broadly muted with a gauge measuring expected equity market swings holding well below a May high of 15.5, suggesting further gains may be hard.
The NASDAQ jettisoned 79.67 points, or 1.3%, to 6,272.66, with Apple, Alphabet, Amazon and Netflix all trading lower.
The dollar index fell 0.1 per cent, with the euro up 0.01 per cent to US$1.175 (RM5.04).
"We would now be careful with a whiff of risk aversion in the air and, by extension, also stay away from shorts in the rates market", RBC's global macro strategist Peter Schaffrik said. "The North Korea situation appears to be the culprit".
The 30-year bond US30YT=RR last rose 28/32 in price to yield 2.7759 percent, from 2.818 percent late on Wednesday. "When earnings are not beating expectations there's a sell off in the companies, and we're just not seeing that money reinvested because of the geopolitical risks".
US crude futures extended losses from Thursday, when they tumbled 2 percent on fears of slowing demand and lingering concerns over a global oversupply.
Crude oil prices tumbled on the back of the selloff on Wall Street and lingering concerns over global oversupply.
Traders snapped up shares in companies that delivered strong quarterly results.
Travel website operator Priceline Group Inc fell 6.9 percent after a disappointing financial forecast. The stock was the biggest gainer in the S&P 500, adding $8.02 to $45.25.
The Nasdaq is up 969.21 points, or 18 percent.
Later on Friday, investors will look to US July consumer price data for hints on the Fed's policy outlook and near-term moves in the dollar. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London. Regeneron Pharmaceuticals led the pack, adding $4.47, or 1 percent, to $474.15. The September copper contract was down two cents to US$2.91 a pound.
The euro was slightly up against the U.S. dollar to last trade at 1.1754, though the single currency has plunged from the highs of 1.1909 achieved last week following reports showing a strong labor market in the US.
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