* Markets revise reactions to Trump remarks on dollar, rates
* Wall Street equity indexes end lower
* Oil futures flat, treasury yields down
(Updates to U.S. close, adds commentary)
By Sinead Carew
NEW YORK, April 13 Wall Street indexes fell
along with U.S. Treasury yields on Thursday on safe-haven demand
spurred by geopolitical worries, and the U.S. dollar rebounded
after a sell-off following remarks by President Donald Trump on
Wednesday was seen as an overreaction.
Financial stocks were the biggest drag on the S&P 500, hurt
by moves in Treasuries and as bank quarterly results showed weak
U.S. Treasury benchmark yields hit near five-month lows as
Trump's comments saying he favored low interest rates
intensified a bond market rally, which was underpinned worries
about potential U.S. military strikes against Syria and North
Early afternoon news that a massive U.S. bomb was dropped in
eastern Afghanistan added to uncertainty.
Kate Warne, principal investment strategist at Edward Jones
in St. Louis, said the dip in bond yields put pressure on stocks
ahead of a holiday weekend in the United States.
"What we've seen is investors from the rest of the world
putting more money in U.S. Treasuries" due to geopolitical
concerns, Warne said.
The Dow Jones Industrial Average fell 138.61 points,
or 0.67 percent, to 20,453.25, the S&P 500 lost 15.97
points, or 0.68 percent, to 2,328.96, and the Nasdaq Composite
dropped 31.01 points, or 0.53 percent, to 5,805.15.
The S&P was down more than 1 percent for the week. The
energy sector was the index's biggest percentage
decliner, led by declines in Chevron Corp and Exxon
The dollar index, which tracks the greenback against
a basket of six trade-weighted peers, was up 0.5 percent,
following a 0.6 percent decline on Wednesday that was the
biggest fall in three weeks. After hitting a five-month low
against the yen, of 108.73 yen, in Asian trading, the dollar
steadied at 109.10 yen.
The U.S. dollar tumbled on Wednesday after Trump told The
Wall Street Journal that the greenback was "getting too strong"
and would eventually hurt the U.S. economy.
"Clearly, I think (the dollar) was oversold yesterday," said
Peter Ng, senior currency trader at Silicon Valley Bank in Santa
Clara, California. "The market was very sensitive to headlines
given how nervous it has become due to geopolitical risk."
The yield on 10-year Treasury notes fell 14
basis points, for the biggest weekly decline since January 2016,
while the gap between two-year and 10-year yields contracted to
under 103 basis points, the tightest since Nov. 9 after Trump's
The MSCI all-world stock index was down 0.5
percent, well below its session high, ending a second week of
In commodities, oil prices were little changed on modest
trading volume in a week in which crude benchmarks recouped more
of March's losses on increased hopes world supply and demand
were nearing balance. U.S. crude ended up 0.13 percent at
$53.18 a barrel, while global benchmark Brent settled up
0.05 percent at $55.89.
Gold was up 0.07 percent at $1,286.95 an ounce after
hitting a five-month high earlier in the session.
(Additional reporting by Dion Rabouin in New York and Jamie
McGeever, Abhinav Ramnarayan in London; Editing by Chizu
Nomiyama and Leslie Adler)