US stock futures are weaker as geopolitical concerns spike again

Romina Amato/Red Bull via Getty Images

US stock futures are trading weaker following North Korea’s latest nuclear test.

In early trade, S&P 500 futures have fallen to 2,465 points, down 0.37% from Friday’s closing level.

US S&P 500 Stock Futures 5-Minute Chart

While a sharp drop, there’s no sign of investor panic, mirroring what was seen following a missile test from North Korea conducted last week.

On Sunday, North Korea claimed that it had built and tested an advanced hydrogen bomb that can be mounted onto an inter-continental ballistic missile (ICBM).

Based on seismic measurements, its likely to be the largest nuclear test of the six conducted by the North.

In response, US Secretary of Defence Jim Mattis warned of a “massive” and “overwhelming” military response following a meeting with US president Donald Trump

Mattis stressed that the US has “many” military options for dealing with North Korea, but that the US does not seek the annihilation of any country.

Before Mattis’ warning, Trump tweeted that “the United States is considering, in addition to other options, stopping all trade with any country doing business with North Korea.”

As a major trade partner with North Korea, that would include stopping all bilateral trade with China.

Although US stock future are open, phyiscial markets will remain shut on Monday for the Labor Day holiday.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.