Stocks are falling, while safer assets are rising after North Korea threatened to test a hydrogen bomb in the Pacific Ocean. Are investors pricing in North Korean risk properly? Are they too complacent?
The major U.S. stock indexes veered slightly lower in afternoon trading Friday, adding to the market's modest losses from a day earlier. Technology companies led the slide. Phone companies and airlines were among the biggest gainers. A new round of tensions between the U.S. and North Korea helped send bond yields lower, which weighed on bank shares.