U.S. stocks slipped on Thursday after President Donald Trump canceled a summit with North Korean leader Kim Jong Un amid hostile threats.
The Dow Jones fell by 182.87 points or 0.73 percent midday. The S&P 500 fell by 14.96 points or 0.55 percent, while the Nasdaq Composite fell by 27.94 points or 0.38 percent.
Trump wrote in a letter that he has canceled the summit, which was to be held in Singapore on June 12, due to “tremendous anger and open hostility” from Kim’s recent remarks.
The move came after North Korean expressed anger against the U.S.’s unilateral demands to denuclearize and after the country reportedly blew up several tunnels at its nuclear test site.
Trump’s announcement of a probe into car and truck imports also weighed into the market, which resurfaced trade war tensions again. China called the move an “abuse” of the clauses and would defend itself if needed.
China announced earlier this week that it will be cutting tariffs on vehicles from the U.S., which would heavily benefit German automakers and American electric car manufacturer, Tesla Inc. (NASDAQ: TSLA).
Chinese President Xi Jinping said previously that the tariff could cut up to nearly 25 percent for imported vehicles, while auto parts will decrease by 6 percent.
“The markets are adjusting now with lots of uncertainties, with China, North Korea, (and the prospect of) a trade war that could spill over to other parts of the economy and the world,” said Adam Sarhan, chief executive of 50 Park Investments in New York.
U.S. stocks were also dragged down by the recent rising oil prices. Despite falling 1 percent on Thursday, oil prices per barrel have gained nearly 40 percent in the past year. The sharp rise in prices have caused fuel prices to rise, resulting in less consumer spending, affecting oil producing nations.
Rising prices is attributable to a deal among OPEC, Russia and other producers to cut output and drain glut. Ongoing global tensions and the Trump exiting the Iranian Nuclear Deal as well as placing sanctions has caused prices to rise.
Best Buy Co Inc. (NYSE: BBY) share plummeted by 7.36 percent midday after the retailer reported its first quarter earnings and topped estimates. The electronics store reported revenue of $9.11 billion, topping FactSet’s estimates of $8.53 billion and an adjusted EPS of 82 cents.