Trump Cancels Kim Summit, Markets Plunge

U.S. stocks fell sharply Thursday after President Donald Trump announced that the hotly anticipated summit next month with North Korea was cancelled.

The meeting would have been the first face-to-face encounter between a sitting U.S. president and a North Korean leader.

The Dow Jones Industrials tumbled 159.64 points to 24,727.17 immediately after the announcement, with Goldman Sachs and Chevron leading the index lower.

The S&P 500 slumped 17.8 points to 2,715.49, as a continued drop in oil prices dragged down energy stocks.

The NASDAQ handed back 41.84 points to 7,384.54, amid losses in Apple, Amazon, Microsoft and Intel.

News of the cancellation came shortly after the Commerce Department said that it started an investigation into whether automobile imports “threaten to impair the national security” of the United States.

Shares of electronics and technology retailer Best Buy fell more than 5% Thursday morning after the company reported quarterly earnings. Though the company posted solid quarterly comparable sales and earnings, its online sales growth decelerated.

Domestic online comparable sales growth slowed to 12% growth in the U.S. from a year ago, compared to 22.5% growth.

Best Buy’s chief financial officer, Corie Barry, added that the company is not upgrading its full fiscal year outlook during the earnings conference call.

All signs continued to point at a tight labour market, with Thursday’s data on new applications for U.S. unemployment rising just slightly to 234,000 for the week ended May 19.

Prices for the benchmark for the 10-year U.S.Treasury were higher, lowering yields to 2.97% from Wednesday’s 2.99%. Treasury prices and yields move in opposite directions.

Oil prices fell 72 cents at $71.12U.S. a barrel.

Gold prices gained $15.90 at $1,305.50U.S. an ounce.

This article provided by NewsEdge.