Excerpt from Fortune below:
Following President Donald Trump’s letter on Thursday canceling the summit with North Korean leader Kim Jong Un next month, investors appear to be bracing for more rockiness ahead.
The Dow Jones Industrial Average shed about 100 points by noon to 24,803, while “safe haven” asset, gold, inched up by 1%. At the same time, investors preparing for potentially more aggressive actions bought in the aerospace and defense companies. The iShares U.S. Aerospace & Defense Exchange Traded Fund, which tracks a basket of companies including Lockheed Martin and Raytheon, also ticked upward by 1%.
“We now have an unpredictable escalation path,” David Kotok of Cumberland Advisors wrote in a Thursday note of Trump’s letter. “We have a cash reserve in our Exchange Traded Fund accounts.”
Earlier on Thursday, Trump penned a letter to the North Korean leader, writing: “I feel it is inappropriate, at this time, to have this long-planned meeting. Therefore, please let this letter serve to represent that the Singapore summit, for the good of both parties, but to the detriment of the world, will not take place.”
Read the full article at Fortune.com