Week in Review August 11, 2017
All three major U.S. equity indexes recorded weekly losses for the first time since the end of June as tensions between North Korea and the U.S. sent worried investors out of stocks and into safe haven assets like gold and sovereign bonds.
The Dow lost 0.9% for the week while the S&P 500 and NASDAQ were down about 1.4%, although all three finished the week on an up note on Friday. The VIX volatility index shot up more than 50% late in the week, closing Friday at 15.5, its highest level in three months. Stocks outside the U.S. were down even more. The Korea Stock Exchange’s KOSPI Index fell 3.2% for the week, falling to its lowest level since the end of May. Hong Kong, one of the hottest markets of 2017, fell 2.5%, while Indian stocks, which have also been one of the best performers so far this year, dropped 3.4%. Japanese stocks were down more modestly, falling a little over 1%. European stocks were also down sharply, with most of the damage coming on Friday. The Stoxx Europe 600 was off 2.7% for the week, while most of the major national indexes were off by more than 2%.