The major U.S. index futures are pointing to a higher opening on Friday, as some traders may look to pick up stocks at reduced levels following the pullback seen over the past few sessions.
Buying interest may be somewhat subdued, however, as the ever-escalating war of words between President Donald Trump and North Korea continues to raise geopolitical concerns.
Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the U.S. is prepared to take military action against North Korea.
“Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!” Trump tweeted.
North Korea responded with a statement by its official KCNA news agency claiming Trump is “driving the situation on the Korean peninsula to the brink of a nuclear war.”
Adding to the modest losses posted in the two previous sessions, stocks moved sharply lower over the course of the trading day on Thursday. With the sell-off on the day, the Nasdaq and the S&P 500 fell to their lowest closing levels in a month.
The major averages ended the session just off their worst levels of the day. The Dow slumped 204.69 points or 0.9 percent to 21,844.01, the Nasdaq plummeted 135.46 points or 2.1 percent to 6,216.87 and the S&P 500 tumbled 35.81 points or 1.5 percent to 2,438.21.
Geopolitical concerns continued to weigh on Wall Street amid an ongoing escalation in tensions between the U.S. and North Korea.
A statement from the North Korean military called President Donald Trump’s warning that the communist nation would face “fire and fury” if it continued its provocations a “load of nonsense.”
North Korea claimed “only absolute force” can work on someone as “bereft of reason” as Trump and detailed plans to fire a salvo of missiles into waters around the U.S. Pacific territory of Guam.
Trump further ratcheted up the rhetoric in remarks this afternoon, suggesting that his “fire and fury” comments may not have been tough enough.
“They’ve been doing this to our country for a long time, for many years, and it’s about time that somebody stuck up for the people of this country and for the people of other countries,” Trump said.
He added, “I will tell you this, North Korea better get their act together or they’re going to be in trouble like few nations ever have been in trouble in this world.”
The focus on North Korea largely overshadowed a Labor Department report showing an unexpected drop in U.S. producer prices…