USA stocks close lower, snapping Dow's 10-day winning streak

North Korea said on Saturday almost 3.5 million workers, party members and soldiers volunteered to join or rejoin its army to fight against the U.S.in the current geopolitical tension between Pyongyang and Washington.

The dollar skidded to an eight-week low against the yen on Friday as escalating tensions between the United States and North Korea triggered yet more investor flight to safety.

Pyongyang has claimed that at least 3.5 million people have joined the North Korean army to defend the country in the case of a war with the US.

Amid the recent spike in tensions, Trump threatened North Korea with "fire and fury like the world has never seen", later adding that the threat wasn't tough enough. The stock lost 78 cents to $3.93. Heating oil fell 1 cent to $1.63 a gallon.

The utilities index, often seen as a bond proxy because of its companies' slow, reliable growth and high dividends, was the only S&P sector that ended the day up, showing a 0.25 percent gain.

Bond prices were little changed.

The annual decline in prices stands at 1.7% in July, compared to 1.6 % in June, according to the index, below the 2% target of the federal Reserve.

Trump to send Jared Kushner to work on Israel-Palestinian peace
He promised to bring "the ultimate deal" between Israel and the Palestinians but did not specify how he would do it. He added that with Olmert "we were on the verge of an agreement but eventually he had to resign over corruption".


However, bank stocks, including Goldman Sachs, Bank of America and Morgan Stanley, were down about 1 percent on the dimming prospects of another rate hike this year. Perrigo rose $2.17, or 2.8%, to $79.01. The Swiss currency was also on track for its biggest daily gain against the euro since the Swiss National Bank removed its cap on the currency in January 2015. TMX Group Ltd was up 3.5 percent to C$68.23, while Quebecor Inc added 2.9 percent to C$44.60. It has been more than a year since the last 5% downdraft in stocks and more than 76 weeks since the stock market suffered a 10% loss. Britain's FTSE 100 was down 1%. The contract fell 97 cents, or 2 percent, to close at $48.59 a barrel on Thursday.

USA gold futures for December delivery climbed 1% to $1,291.80 per ounce.

Benchmark U.S. crude fell 22 cents to $49.17 a barrel on the New York Mercantile Exchange.

The euro dipped 0.1 per cent to $1.1733 but the single European currency has been slipping this week against the dollar, having hit a more than 2 1/2-year high of $1.1892 on August 2.

"The overnight Korean news has prompted some unwinding of the cheapening trades on the franc that has been going on for some time and though positioning is not stretched by any means, the franc's strength may have room to run", said Timothy Graf, head of macro strategy at State Street Global Markets in London.

The technology sector was the biggest weight on the S&P 500 index with a 1.9-percent drop. Japan was closed on a public holiday. Brent crude, used to price worldwide oils, gained 29 cents to $52.43 in London.

ASIA'S DAY: Earlier, Asia bore the brunt of the mounting geopolitical uncertainty, with South Korea's Kospi index closing down 1.7 percent at 2,319.71 and Hong Kong's Hang Seng ending 2 percent lower at 26,883.51.

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