Steve LeVine Aug 14
Fears of a U.S.-North Korea war have dropped
Investors have decided that, at least for now, war between the U.S. and North Korea is much less likely than it seemed last week, sending up stocks today with their greatest gains in at least two months.
- The Dow Jones was up 0.6% and the S&P 500 by 1%. Closer to the theater of potential war, South Korean stocks rose 0.6%, and Hong Kong by 1.36%.
- North Korean leader Kim Jong Un "is big on using coercive diplomacy to move closer to what he wants ... but he doesn't intend to fight," said James Lewis at the Center for Strategic and International Studies, speaking to Axios last Friday.
- "He'd like to split the United States and South Korea. But he doesn't want war. He knows what will happen as well as anyone."