US STOCKS-Wall St falls on N.Korea nuclear test, U.S. rate hike worry

viernes 9 de septiembre de 2016 13:14 GYT

* North Korea conducts fifth nuclear test

* Fed's Rosengren says increasingly risky to delay rate hike

* Energy shares fall as oil retreats

* Indexes down: Dow 1.25 pct, S&P 1.44 pct, Nasdaq 1.54 pct (Updates to early afternoon, adds data)

By Chuck Mikolajczak

NEW YORK, Sept 9 (Reuters) - U.S. stocks dropped on Friday as investors were rattled by a nuclear test by North Korea and comments by Federal Reserve officials that hinted at a U.S. interest rate hike, putting the S&P 500 on pace for its worst day in over two months.

North Korea conducted its fifth and biggest nuclear test on Friday and said it had mastered the ability to mount a warhead on a ballistic missile, drawing condemnation from the United States as well as China, Pyongyang's main ally.

There was further pressure on the equity market after Boston Fed President Eric Rosengren, a historically dovish policymaker, said the U.S. central bank faced increasing risks if it waited too much longer. He said a gradual monetary policy tightening was likely appropriate, although he added the Fed was unlikely to raise rates too rapidly.

"This is more about central banks than anything else; there's a rising expectation of inflation as well as what seems to be a modest shift within central banks for a little bit steeper yield curve," said Jason Pride, director of investment strategy at Glenmede in Philadelphia, which manages more than $30 billion in assets.   Continuación...