U.S. stocks extend fall on North Korea tensions, S&P down 1pct

US stocks close lower, snapping Dow's 10-day winning streak

Trump's 'fire and fury' warning hits stocks, lifts Swiss franc and gold

Technology companies were leading a broad slide in USA stocks in early trading Thursday as investors pored over the latest batch of corporate earnings reports. The stock was the biggest decliner in the S&P 500, losing $155 to $1,893.99.

Simmering tensions between the US and North Korea were also weighing on the market. Brent crude, used to price global oils, gained 56 cents to $52.70 in London.

The Standard & Poor's 500 index fell 5.99 points, or 0.2 percent, to 2,474.92. The Dow Jones industrial average slid 36.64 points, or 0.2 percent, to 22,048.70. The Russell 2000 index of smaller-company stocks gave up 6 points, or 0.5 percent, to 1,390. Several hours later, North Korea said it was considering a strike that would create "an enveloping fire" around Guam, the Pacific island where the United States stations military personnel. Oil also regained momentum as data pointed to declining US inventories.

The declines have jolted markets from a period of calm, when stock indexes around the world climbed to records and volatility remained historically low. The stock lost $2.46 to $9.38. Broadcom gave up $5.72, or 2.3 percent, to $243.45.

"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. Viacom slid 60 cents, or 1.9 percent, to $30.17.

The strength on Wall Street is partly due to bargain hunting, with traders picking up stocks at reduced levels following the pullback seen over the past few sessions. Dillard's slumped 15.9 percent after the chain booked a loss for the quarter as increased inventory led to big discounts.

Priceline Group slid 6.9 percent after the online travel booking service issued a profit forecast that was weaker than analysts were expecting. Economists had expected prices to rise by 0.2 percent.

Tokyo´s blue-chip index tumbled 1.3 percent to its lowest close since late May after the Dow´s winning streak of nine straight records ended following Trump´s sharp rhetoric of "fire and fury", with the main European bourses also opening lower Wednesday.

News that USA producer prices unexpectedly fell in July earlier helped send the dollar lower. Brent crude, used to price worldwide oils, gained 56 cents to $52.70 in London. Brent crude, the global standard, lost 23 cents to $52.14 a barrel in London.

CURRENCY: The dollar declined to 109.79 yen from Tuesday's 110.34 yen. The euro strengthened to $1.1756 from $1.1752.

The market indexes wavered between small gains and losses for much of the morning, then veered lower by afternoon.

In Europe, Germany's DAX rose 0.3 percent, while France's CAC 40 added 0.2 percent. The FTSE 100 index of leading British shares declined 0.6 percent. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent.

Information technology fell 1.24 percent, hurt by a 16.6 percent plunge to 66.50 Canadian dollars (52.38 dollars) in Kinaxis Inc. stock.

Latest News