By JORDAN KENDALL
GLOBAL Stock markets are concerned with the ongoing diplomatic crisis between North Korea and the United States.
Following Donald Trump’s ‘fire and fury’ rhetoric, the Dow Jones industrial average fell 200 points with Wall Street giant Goldman Sachs taking the most losses.
Major Tech firms fell on the Nasdaq index with stocks falling 2.1 percent, with Apple, Alphabet, Amazon and Netflix all trading lower.
Facebook, The social network connecting the world, fell 3.78 points – a 2.21% drop.
The S&P 500 declined 1.4 percent, with information technology and financials leading decliners. The index also dipped below its 50-day moving average, a key technical level, for the first time in a month.
Paul Springmeyer, a US Markets expert said “If you look across all sectors, it’s a broad-based selloff, the news is concerning to all. … I think this is a cautious pullback.”
Why does the market reaction matter?
The market reaction matters because this is where many predict the state of Trump’s administration.
So far, the Financial Markets have had a positive reaction to the Trump presidency despite the mainstream media outlets criticising him on a daily basis.
The stock markets give us a wider insight into public opinion, it’s where Americans are placing their dollars – if the stocks are falling due to Trump’s actions in the White House this means the American public is losing faith.
Financial Data Provided by CNBC