The strong earnings season helped propel USA stocks to record highs.
Cracks are showing in what has been a virtually non-stop USA equity rally after a rapid escalation of tension between North Korea and the United States this week. The indexes fell lower for the week with the Dow Jones Industrial Average -1.06%, the Nasdaq Composite down -1.50% and the S&P 500 fell -1.43%.
The Nasdaq Composite Index plunged 2.1% to 6216.87 and the Standard & Poor's 500 Index dropped 1.45% to 2438.21. The Russell 2000 index of smaller-company stocks gave up 19 points, or 1.4 percent, to 1,377.
It also came amid heightened tensions between North Korea and the United States.
Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States. The back and forth put investors in a selling mood for the third day in a row.
Kohl's stock dropped almost six percent despite better than expected earnings.
"Since these are the stocks that have been in the spotlight the most, they tend to have the most volatility upwards and downwards", said Chris Bertelsen, chief investment officer of Aviance Capital Management in Sarasota, Florida.
"What has changed this time is that the scary threats and war of words between the U.S. and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney, as quoted by Reuters. Among the more popular stocks lifting indexes were Microsoft (+1.54%), Cisco (+1.42%), Apple (+1.39%) and Netflix (+1.36%). The stock fell another 2 cents, or 0.4%, to 5.12 Friday. Bank of New York Mellon fell $1.74, or 3.2 percent, to $52.30, while Citizens Financial Group slid $1.11, or 3.2 percent, to $33.92.
The market slide accelerated slightly in the last half-hour of trading as President Donald Trump denounced North Korea's nuclear program. Its shares slid $11.64, to $61.70. Kohl's also declined, sliding $2.66, or 6.3 percent, to $39.28. And Blue Apron shares dipped after its first earnings report as a public company.
Bond prices were little changed.
The yield on the benchmark 10-year Treasury note settled at 2.191%, its lowest close since June 26, compared with 2.211% Thursday and 2.269% last Friday. Oil prices veered lower as early gains faded.
The benchmark US yield on Thursday was just above 2.2 percent, at its lowest level since late June, as investors bought up Treasuries, a classic safe harbor. Brent crude, used to price worldwide oils, added 21 cents to $52.91. Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively. Meanwhile, after jumping $10.80 to $1,290.10 an ounce in the previous session, gold futures are climbing $6.50 to $1,296.60 an ounce. It announced earnings of 92 cents per share on revenue of $2.23bn.
CURRENCIES: The dollar fell to 109.96 yen from 110.48 yen late Tuesday. The euro rose to $1.1774 from $1.1752.
MARKETS OVERSEAS: Major indexes in Europe were headed lower.
Gold added $10.80, or 0.8 percent, to settle at $1,290.10 an ounce. The VIX is measured on a scale of 1-100 with 20 as the historical average.