U.S. stocks snap 3-day losing streak in roller coaster week

Closing Indexes Summary August 10

Closing Indexes Summary August 10

ANALYST TAKE: "Equities look set to end this week on a downer, as geopolitical uncertainty regarding North Korea shakes volatility from its 2017 slumber", said Mike van Dulken, head of Research at Accendo Markets.

Instead, investors headed for safe havens, such as gold, which gained as much as 1.2% - a near two-month high - in Wednesday trading.

Besides, persistent buying by local jewellers at domestic spot market stoked the uptrend.

The Dow Jones Industrial Average fell 163 points, or 0.74%, to 21,886, the S&P 500 lost 31 points, or 1.23%, to 2,443 and the Nasdaq Composite dropped 117 points, or 1.84%, to 6,236.

The so-called fear gauge - the CBOE Volatility Index (VIX), the most widely followed barometer of expected United States stock market volatility, hit its highest since November 8, when Mr Trump was elected president.

Traders will also get the opportunity to respond to fresh US consumer inflation data on Friday.

USA stocks closed slightly lower Wednesday, making up much of the ground they lost earlier following a rare batch of earnings disappointments by Walt Disney and other big companies. The dollar index slipped to a one-week low on Friday after the U.S. data.

The data maintained concerns surrounding lower than expected USA inflation which could deter the Federal Reserve from raising interest rates again this year.

Taking the above numbers into account, markets are less confident that the Fed will deliver another rate hike this year, as Fed policymakers will want to see evidence that inflation is moving back towards 2% goal before raising rates further.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.22% from 2.20% late Thursday. Other companies were also up; Newcrest Mining moved 2.3%, Resolute Mining 2.1% and Evolution Mining rose 2%.

The dollar index fell 0.32 percent, with the euro up 0.42 percent to $1.1819.

But in the US, Wall Street opened tentatively higher as consumer inflation data showed signs of life after months of weakening price pressure. Regions Financial shed 23 cents, or 1.6 percent, to $14.07.

OIL: Benchmark U.S. crude lost 24 cents to $48.37 per barrel on the on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, declined 20 cents to $51.70 per barrel in London.

There were falls of almost 2% on South Korea's Kospi and Hong Kong's Hang Seng, with markets in mainland China and Australia also down - taking their cues from sharp losses on Wall Street earlier. This morning gold had reached $1,286.33 while gold for delivery in December rose 0.8% to $1,290.10.

Gold added $3.90 to settle at $1,294 an ounce.

The last time the S&P closed down more than 1 percent was May 17.

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