Travel and media companies led US stocks lower in afternoon trading Wednesday as some rare earnings disappointments weighed on the market.
Global stock markets ended their worst week in months amid rising tensions between the US and North Korea, though USA stock indexes steadied on Friday to close up slightly.
The Dow Jones Industrial Average fell 0.9 percent to end at 21,844.01, the only close below 22,000 since breaking through that level for the first time August 2.
A Labour Department report showed its producer price index posted a surprise drop in July, down 0.1 percent for the largest slide in nearly a year. The Russell 2000 index of smaller-company stocks picked up 1.69 points, or 0.1 percent, to 1,374.23. Those losses dragged the S&P 500 down 1.5% for the week, its worst such showing since the week ended March 24. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.5 basis points at 2.226%. Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively. Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce.
Tensions with North Korea appear to have finally shaken the confidence of United States investors, after the S&P 500 opened 0.8% lower, threatening to end its 15-day streak with a closing streak of more than 0.3%, a 90-year record.
The overall financials group, which accounts for roughly a third of the index slipped 0.9 percent.
The S&P/TSX composite index was down 91.01 points to 15,126.32, after 90 minutes of trading.
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"The stand-off between the two countries has encouraged dealers to dump stocks and seek safe haven investments like gold".
The dollar was further weighed Friday by the soft USA inflation data.
The focus on North Korea has largely overshadowed a Labor Department report showing an unexpected drop in United States producer prices in the month of July.
"The DAX is flirting with support at the 200-day moving average just above 11,950 and another bout of risk aversion is likely to see this breached, if the falls in Asia overnight are anything to go on", said Neil Wilson, senior market analyst at ETX Capital.
Selling was broad. Declining issues outnumbered advancing ones on the NYSE 6-to-1; on Nasdaq, a 3.60-to-1 ratio favored decliners.
In London, the FTSE 100 lost 1.4pc as large caps Anglo American, BT Group, Rio Tinto and Lloyds fell after going ex-dividend.
Traders took heart in a measure of US consumer prices that increased only slightly in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year. Copper fell 2 cents to $2.93 a pound. Brent crude, used to price worldwide oils, gained 56 cents to $52.70 in London. Brent crude, used to price worldwide oils, rose 20 cents to $52.10 a barrel in London.