NEW YORK (REUTERS) - US stocks were little changed on Friday as fresh concerns over tensions between North Korea and the United States weighed on the mood of investors.
North Korea said it might test a hydrogen bomb over the Pacific Ocean in response to US President Donald Trump's threat to destroy the reclusive country in his United Nations address.
Mr Trump also put more economic pressure on North Korea by ordering additional sanctions, including on its shipping and trade networks but stopped short of going after Pyongyang's biggest trading partner, China.
"Big noise out of North Korea will keep today's trading defensive as the biggest threat to the markets make the headlines," said Peter Cardillo, chief market economist at First Standard Financial in New York. "While we don't expect a serious selloff, the geopolitical rhetoric could heat up." The latest spike in tensions prompted demand for gold, which rebounded from a four-week low on Friday (Sept 22).
Wall Street slipped on Thursday as investors braced for a third interest rate hike this year and shares of Apple fell on worries about demand for its latest smartphone.
Investors increased bets the Federal Reserve would raise rates again this year after its economic projections showed 11 of 16 officials see room for a 0.25 percentage points increase in the federal funds rate from the current level.
Market will look for more insights into Fed's policy from speeches by Dallas Fed president Robert Kaplan and his Kansas City counterpart Esther George later in the day.
Oil prices were steady as investors waited to see whether major producers meeting in Vienna would back an extension to output cuts beyond March next year.
At 9:38 a.m. ET (9:38 p.m. Singapore time), the Dow Jones Industrial Average was down 18.53 points, or 0.08 per cent, at 22,340.7, the S&P was down 2.31 points, or 0.09 per cent, at 2,498.29 and the Nasdaq Composite was down 7.28 points, or 0.11 per cent, at 6,415.41.
Six of the 11 major S&P sectors were higher, led by 0.56 percent rise in the telecom services index. The financial index fell 0.44 per cent, its first session of loss in six days.
Advancing issues outnumbered decliners on the NYSE by 1,435 to 997. On the Nasdaq, 1,108 issues fell and 1,064 advanced.