U.S. Stock Index Futures Drop Amid Mounting North Korea TensionsBy
U.S. stock-index futures slipped, mirroring equity declines in most of Asia and Europe, as U.S. President Donald Trump heightened his rhetoric against North Korea to an unprecedented level.
S&P 500 contracts expiring in September dropped 0.5 percent as of 6:01 a.m. in New York, while those on the Dow Jones Industrial Average lost 0.2 percent. The CBOE Volatility Index headed for its biggest two-day advance since May, after Trump said in response to a Washington Post report on North Korea’s nuclear capabilities that the country would be met with “fire, fury” if it continues threatening the U.S. North Korea said it was examining plans to fire a missile toward an American military base on Guam.
- President Donald Trump’s warning to Kim Jong-Un’s regime jolted markets from Hong Kong, Seoul, Tokyo, Paris and London even as U.S. lawmakers questioned Trump’s willingness to back up the heated rhetoric.
- The dollar was little changed, with the Swiss franc registering the best performance against the greenback as the increased geopolitical tension drove investors to haven assets.
- Netflix Inc. fell 3.8 percent in premarket trading after Walt Disney Co. said it would stop supplying new Disney- and Pixar-branded movies to the streaming service and other partners starting in 2019 and launch an online product of its own. Walt Disney shares declined 3.7 percent.
- Tripadvisor Inc. tumbled 7 percent after saying it’s “incrementally more cautious” about the second half of the year. Priceline Group Inc. slid 6.5 percent after its outlook missed estimates.