Concerns over North Korea's nuclear ambitions and record oil prices pushed stocks lower yesterday and added to Wall Street's distresses about the economy and interest rates.

In response to North Korea's test-firing of missiles on Wednesday, stocks globally drooped as investors worried that tensions between the Asian nation North Korea and the U.S. could deepen.

Anxiety about North Korea's actions, along with worries about gasoline supplies, sent crude oil futures to a new intraday record of US$ 75.40 per barrel before they retreated slightly. A barrel of light crude however set a settlement record of US$ 75.19, up USD 1.26, on the New York Mercantile Exchange.

With the U.S. economy still strong, a report on factory orders out on Wednesday was stronger than expected; investors worrying about interest rates, remained hesitant to buy stocks. The Labor Department's report on June employment, scheduled out Friday, added to the market's hesitancy, since a strong report could motivate the Fed to continue raising interest rates.

"Investors aren't really looking for opportunities to get in. They're looking for reasons to get out," said Scott Wren, equity strategist at A.G. Edwards & Sons. "I read the Fed statement last week as dovish, but with that employment report coming up, nobody wants to get into the market in front of that," Wren added.

The Dow Jones industrial average dropped 76.20 points, or 0.7%, to 11,151.82, after gaining 77.80 points in holiday-shortened trading Monday. Microsoft, one of 30 Dow stocks, fell 35 cents to close at US$ 23.35. Boeing, one more Dow stock, lost $ 1.13 to close at US$ 80.17.

Broader stock indicators also sank sharply. The S&P's 500 index lost 9.28 points, or 0.7%, to 1,270.91, and the NASDAQ composite index drooped 37.09, or nearly 1.7%, to 2,153.34.