Tensions Build with North Korea

Monday, stocks in Asia, Europe, and the U.S. closed little changed on low volume. There was enough enthusiasm left though to bring both the S&P 500 Index and Dow Jones Industrial Average to record closing highs. Tuesday, stocks in Asia rose 0.4%, closed slightly higher in Europe, but fell 0.3% in the U.S. on moderate volume. The VXO moved up 6% to close at 9.03 in response to increased tensions between North Korea and the U.S. This finally broke the streak of record closing highs of the Dow at nine.

Wednesday, stocks fell 0.8% in Asia and Europe but fell just slightly in the U.S. on moderate volume. The 10-Year U.S. Treasury Bond yield fell 2% to close at 2.24. Precious metals and their miners rose 1%.

Thursday, stocks fell 0.6% in Asia as war tensions in the region continue to escalate. The decline was around the world as stocks in Europe fell 1.1% and in the U.S. 1.3% on strong volume. The VXO shot up 52% to the still benign level of 13.86 — which is further testimony of how wildly giddy the stock market has been and still remains. The Dow Jones industrial Average broke well below the 22,000 mark it exceeded recently. Precious metals rose 1% while their miners gained twice that amount.

Here’s an interesting article that will make your hair curl. Friday, stocks in Asia and Europe fell 1% but closed little changed in the U.S. on moderate volume. The VXO fell 7% to close at 12.87.

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