Tech companies lead worst day for stock market since May
Brewing tensions between the U.S. and North Korea put investors in a selling mood again Thursday, dragging U.S. stocks lower for the third day in a row.
The latest sell-off was the most severe yet, amounting to the biggest single-day drop for the stock market in nearly three months.
Technology companies, which have been the biggest gainers this year as the market hit a succession of record highs, led the broad slide. Banks and department store shares also were among the big decliners. Utilities eked out a small gain.
"The market has been looking for an excuse to sell off and North Korea and the president gave the market that excuse," said David Schiegoleit, managing director at the U.S. Bank Private Client Wealth Management. "As long as it doesn't go beyond just a war of words, this is going to be short-lived."
The tech-heavy Nasdaq composite bore the brunt of the sell-off, losing 135.46 points, or 2.1 percent, to 6,216.87. May 17 was the last time the three indexes had a bigger single-day decline.
Smaller-company stocks also fell sharply. The Russell 2000 index gave up 24.40 points, or 1.7 percent, to 1,372.54. All the indexes are down for the week.
Bond prices rose. The yield on the 10-year Treasury note slipped to 2.20 percent from 2.25 percent late Wednesday.
Wall Street got off to a downbeat start early Thursday as tensions between the U.S. and North Korea continued to escalate, rattling markets overseas.
Early in the day, North Korea revealed a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers. Later, speaking to reporters, President Donald Trump demanded that North Korea "get their act together" or face extraordinary trouble.