Wall Street closes with heavy losses as investors seek refuge

Major equity indexes in the U.S. recorded large losses on Thursday as investor moved away from riskier assets amid rising geopolitical tensions between the United States and North Korea.

• Forex today: USD lower, risk-off, lower rates

Commenting on today's market action, "markets are looking for any reason at all for a reset. That reset is being triggered by North Korea geopolitical concern and stretched valuations," Peter Kenny, senior market strategist at Global Markets Advisory Group, New York, told Reuters.

The Chicago Board Options Exchange (CBOE) Volatility Index .VIX, which measures the expected near-term stock market volatility, surged to a fresh 3-month high at 16.06 on Thursday. The S&P 500 recorded its biggest drop since mid-May and closed the day at 2,437.75, down 1.47%. In addition to the low risk appetite, disappointing quarterly sales report from department stores Macy's and Kohl's dragged their shares lower 9.5% and 7% respectively. The Dow Jones Industrial Average lost 104.69 points, or 0.93%, to 21,884.01 while the Nasdaq Composite fell 35.46 points, or 2.13%, to 6,216.87.

Headlines from the U.S. session:

• US Pres. Trump: Maybe 'fire and fury' statement wasn't 'strong enough' - AP
• US Pres. Trump appoints Neil Chatterjee as Chair of Federal Energy Regulatory Commission
• CIA agrees North Korea can fit nuclear weapon on missile - NBC
• Fed's Dudley: Weak dollar should help boost import prices, help push up inflation
• US: Despite soft PPI, fundamentals point to firm inflation ahead - Wells Fargo
• Fed's Dudley: Modest wage growth reflects sluggish productivity
• OPEC boosts demand outlook for its oil as fuel use strengthens - Bloomberg
• US: Producer price inflation suggests lack of pipeline price pressures - ING
• US: PPI for final demand falls 0.1% in July; services decrease 0.2%, goods decline 0.1%