US open: Stocks slide following Trump's withdrawal from North Korean summit

Wall Street moved lower at the open on Thursday amid growing geopolitical concerns, with worries about trade talks with China and Trump's decision to pull out of a historic summit with North Korean leader Kim Jong Un weighing on investors' minds.

At 1510 BST, the Dow Jones Industrial Average and S&P 500 were down 0.53% to 24,755.15 and 0.47% to 2,720.33, respectively, while the Nasdaq had lost 0.36% to 7,399.09.

Trump told North Korean leader Kim Jong Un that a planned summit between the two "will not take place" in a letter that followed expressions of anger from officials of the rogue nation over US demands to denuclearise.

In his letter, Trump said, "you talk about your nuclear capabilities, but ours are so massive and powerful that I pray to God they will never have to be used."

Choe Son Hui, North Korea's vice minister of foreign affairs, said that if the 12 June talks were cancelled, the US would be faced with a "nuclear-to-nuclear showdown".

Elsewhere, Trump reignited concerns about a trade war between the US and China by announcing plans for an investigation that could lead to import tariffs on cars. The US Department of Commerce said late on Wednesday that it had begun a probe into auto imports to determine whether they "threaten to impair the national security" of the US.

"There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry," Commerce Secretary Wilbur Ross said in a statement, as he promised a "thorough, fair and transparent investigation".

China hit back by saying that the probe was an "abuse" of national security clauses.

In corporate news, Victoria's Secret parent L Brands collected 2.11% at the open despite downgrading its outlook late on Wednesday.

Shares in Hormel Foods lost 4.41% after earnings slipped on less than expected revenue rise, while Medtronic ticked up 1.90% following a fourth-quarter earnings and revenues beat.

Best Buy slumped 7% as online growth slowed and McKesson dropped 3.37% after missing estimates.

On the data front, the number of Americans filing for unemployment benefits rose last week to a seven-week high, according to data from the Labor Department.

US initial jobless claims were up 11,000 to 234,000 from the previous week's level, which was revised up by 1,000. Economists had been expecting a reading of 220,000.

Meanwhile, the four-week moving average was up 6,250 to 219,750 from the previous week's average, which was revised up by 250.

In other news, sales of US existing homes slid in April after two straight months of increases, according to data from the National Association of Realtors.

Sales fell by 2.5% to a seasonally-adjusted annual rate of 5.46m in April. Economists had been expecting a level of 5.57m.

On the year, sales were 1.4% lower and have fallen year-over-year for two straight months.