Wall Street Stages Recovery, but North Korea Keeps Rally From Takeoff

Wall Street Stages Recovery, but North Korea Keeps Rally From Takeoff

European markets also slid in early trade after Wall Street indices suffered their biggest losses in almost three months Thursday, while the dollar struggled to recover from eight-week lows below 109 yen as investors fled to safe haven assets. They outweighed gains in health care stocks and elsewhere.

The Dow Jones industrial average lost 204 points, marking three consecutive day of losses.

Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts.

Investors were also hesitant about buying smaller companies as the Russell 2000 index was down 0.05 percent on Friday, and was more than 5 percent off its July 25 record close.

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States.

Global markets have been on edge since Tuesday, when President Donald Trump warned North Korea of severe retribution should the authoritarian state proceed with any more missile tests or threats.

The Tokyo markets will be closed on Friday for a national holiday and will reopen Monday.

The Chinese volatility gauge jumped by the most since January 2016 to its highest level in more than seven months. It's still the highest it's been since May.

A Labor Department report showed its producer price index posted a surprise drop in July, down 0.1% for the largest slide in nearly a year. Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control. But some economists say the Fed may stand pat for the rest of 2017 unless inflation accelerates in coming months.

UP WITH TECH: Investors bid up technology sector shares.

Healthcare stocks were among the big gainers.

On Friday, the S&P 500 rose 3.11 points, or 0.1 percent, to 2,441.32. Rival Advanced Micro Devices was also down 3.4 percent.

The news was also greeted with dismay by traders in Asia, with Tokyo down 1.3 percent, Hong Kong losing 0.4 percent and Seoul registering a 1.1-percent decline.

Netflix and red hot chip company Nvidia dropped around 4%.

After hurrying to sell off richly-valued stocks this week, investors appeared to be reassessing the geopolitical risks, according to Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas. Pan American Silver Corp, which reported second quarter results, rallied 11.8 percent to C$22.69. USA gold futures for December delivery was mostly unchanged at $1,290.50 per ounce.

Brent crude, used to price worldwide oils, rose 20 cents to $52.10 a barrel in London.

Below that level lies another key support level for the dollar on technical charts at 108.13 yen, a trough the greenback touched in mid-April. The euro rose to $1.1812 from $1.1774.

Despite the past week's decline, the major indexes are in positive territory so far this year, led by the Nasdaq, which is up 16.2 percent. Germany's DAX was flat, while France's CAC 40 fell 1.1 percent.