S&P, Nasdaq rise 1 percent as North Korea tensions wane


The Nasdaq composite added 83.68 points, or 1.3%, to 6,340.23.

U.S. stocks recovered further yesterday from last week's selloff, with the S&P 500 posting its biggest one-day per centage gain since April as worries eased about a conflict between the United States and North Korea.

While the data was strong, however, worries about retailers' earnings and the outlook for home improvement stores dragged on the S&P, with Home Depot and Lowes Companies representing the biggest drags on the benchmark.

The dollar rose by more than 1 percent against the Japanese yen, touching its highest in a week.

Chinese retail sales were also on the weak side, printing at 10.4% in terms of the year-on-year rate of change, down from 11.0% in the previous month and below the consensus of 10.8%.

"After the sharp sell off in the dollar, over the weekend nothing happened so I guess the threat from the (Korean) peninsula is low, but we think gold fundamentals are strong", Xu said.

USA crude settled down 0.08 percent.

The dollar index .DXY rose 0.47 percent, with the euro EUR= down 0.42 percent to $1.1729.

The S&P 500 rose 1.0 percent on Monday in its biggest daily percentage rise since April.

But Merck shares rose modestly, while the iShares Nasdaq Biotechnology ETF climbed 1%, in line with the rest of the market.

Daily December Comex Gold
Daily December Comex Gold

The economic calendar features a whirlwind of market-moving events this week. Trump had declared that the US military was "locked and loaded" while Pyongyang threatened to fire four missiles into waters near the USA territory of Guam. The leader, however, warned that he could change his mind "if the Yankees persist in their extremely risky reckless actions".

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.1 per cent higher in afternoon trade, with Australia up 0.5 per cent.

There are no Federal Reserve officials scheduled to speak on Tuesday.

About 5.5 billion shares changed hands on U.S. exchanges.

VF Corp.(VFC), the parent of clothing brands such as North Face and Timberland, late Monday reached a deal to buy Williamson-Dickie Manufacturing Co (http://www.marketwatch.com/story/vf-parent-of-north-face-to-acquire-dickies-owner-in-820-million-apparel-deal-2017-08-14). for $820 million in cash.

On Wednesday, the European Commission's statistical agency will report on second-quarter GDP.

"What the market really reacted negatively to on Thursday was Trump's somewhat incendiary comments about 'fire and fury, '" said Dave Lafferty, chief market strategist of Natixis Global Asset Management.

The CBOE Volatility index, Wall Street's fear gauge, fell more than 3 points after it spiked to a nine-month high last week.

The yield on Germany's 10-year government bond, the benchmark for the eurozone, was up 4.5 barrels a share to 0.43%, a move mirrored by most other eurozone debt.