The US markets ended in red terrain on Thursday, as geopolitical worries hovered over markets after Trump called off the summit that was set to take place June 12 in Singapore. The cancellation followed a statement from Choe Son Hui, North Korea's vice minister of foreign affairs, in which he said if the talks didn't go ahead, the U.S. could instead face off with North Korea in a nuclear-to-nuclear showdown. Negative sentiment was also generated amid lingering trade concerns after Commerce Secretary Wilbur Ross initiated an investigation into whether imports of automobiles and parts threaten to impair U.S. national security.
On the economic front, the Labor Department released a report showing an unexpected increase in initial jobless claims in the week ended May 19. The report said initial jobless claims rose to 234,000, an increase of 11,000 from the previous week's revised level of 223,000. The increase came as a surprise to economists, who had expected jobless claims to edge down to 220,000 from the 222,000 originally reported for the previous week. A separate report from the National Association of Realtors showed a much bigger than expected pullback in existing home sales in the month of April. Existing home sales tumbled by 2.5 percent to an annual rate of 5.46 million in April after climbing by 1.1 percent to a rate of 5.60 million in March. The street had expected existing home sales to edge down by 0.2 percent.
The Dow Jones Industrial Average declined 75.05 points or 0.30 percent to 24,811.76, the Nasdaq slipped 1.53 points or 0.02 percent to 7,424.43 and the S&P 500 was down by 5.53 points or 0.20% to 2,727.76.