U.S. stock futures lower as North Korea tensions rise

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U.S. stock futures lower as North Korea tensions rise

(Reuters) – U.S. stock index futures were lower on Tuesday following North Korea conducted its strongest nuclear test over the weekend, rattling investor opinion. North Korea conducted its nuclear test was of an advanced hydrogen bomb to get a missile, marking a dramatic escalation of the stand-off of the regime with its allies and the United States. The United States blamed North Korea’s trading partners on Monday of helping its nuclear ambitions and the White House announced that “all options to address the North Korean threat are on the table.” Equity markets recently have managed to withstand geopolitical events surrounding North Korea, with losses. September is typically the worst month in the year for stocks, with the S&P falling 0.5 percent on average. This September could be especially nail-biting as Wall Street may face a rough ride if there is a showdown in Washington within the U.S. budget and the national debt ceiling. Wall Street gained modestly on Friday as a tepid U.S. jobs report kept expectations muted for another interest rate hike this year, while investors kicked off a typically dour month for stocks on a positive note. The S&P 500 hovered near all-time highs as major stock indicators marked gains for a second week. The Nasdaq tallied a record closing high after minting its best week of the year. Equity markets have been closed on Monday for Labor Day holiday. Economic data from the day include a report by the Commerce Department that will probably reveal that factory goods orders dropped 3.3 percent in July, compared with an increase of 3.0 percent in the previous month. The data is expected at 10:00 a.m. ET (1400 GMT) Federal Reserve’s Minneapolis Chief Neel Kashkari and Dallas Fed head Robert Kaplan are expected to talk at events later in the day. Fed Board Governor Lael Brainard will talk in New York on the economic outlook and monetary policy. Shares of United Technologies (UTX.N) were down 3.83 percent in premarket trading after the company struck a $30 billion deal to buy avionics and interiors manufacturer Rockwell Collins (COL.N). Rockwell shares were up 0.87 percent. Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’SilvaOur Standards:The Thomson Reuters Trust Principles.

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