US stocks trade lower amid geopolitical tensions

Consumer Infoline News Desk / On 2017-09-23 08:33:37

US stocks traded lower amid rising geopolitical tensions between North Korea and the US.

The Dow Jones Industrial Average lost 29.75 points, or 0.13 per cent, to 22,329.48. The S&P 500 erased 1.61 points, or 0.06 per cent, to 2,498.99, Xinhua news agency reported.

The Nasdaq Composite Index was down 8.31 points, or 0.13 per cent, to 6,414.38.

Tensions between the two countries escalated as North Korea said that it may consider testing a hydrogen bomb in the Pacific Ocean. If successfully conducted, the test would be the Asian country's first nuclear test beyond its borders.

North Korean top leader Kim Jong Un responded to US President Donald Trump's threat this week to "totally destroy" North Korea, saying Trump "will face results beyond his expectation".

Analysts said investors became uneasy amid the tensions and were seeking safe-haven assets before the weekend.

Meanwhile, Wall Street was still digesting the latest Federal Reserve decision.

The US central bank kept interest rates unchanged, but announced that it will start to unwind its $4.5 trillion balance sheet from October, a further step to end the loose monetary policy.

It was widely expected that the Fed may raise rates by the end of December.

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