The Dow Jones Industrial Average rose 44.33 points, or 0.2 percent, to 21,888.34, the S&P 500 gained 6.01 points, or 0.25 percent, to 2,444.22 and the Nasdaq Composite added 32.10 points, or 0.52 percent, to 6,248.97.
North Korea has since threatened to launch missiles at the US territory of Guam, and the country previously threatened "all-out war, wiping out all the strongholds of enemies, including the USA mainland".
The Nasdaq finished the day at 6,216.87, a slide of 135.46, while the S&P 500 lost almost 1.5 percent, ending the day at 2,438.21.
European markets closed lower: London's FTSE sank 1.4 per cent, Paris lost 0.6 per cent and Frankfurt dipped 1.2 per cent. Over the next three months, the average gain has been good but not great - +1.15%.
Damage control came in the form of Secretary of State Rex Tillerson, on Thursday, who said: "I think what the president was just reaffirming is that the United States has the capability to fully defend itself from any attack, and our allies, and we will do so".
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"The market is so demanding for all the teams, not just Manchester City ". Now, the 2017/18 premier league season is just days away. There's a gulf between Albion and City.
Shares of Walt Disney were down 4.23 percent, the biggest drag on Dow, as investors doubted whether the company can succeed with its plan to launch its own streaming services rather than rely on Netflix to reach online viewers. TMX Group Ltd was up 3.2 percent to C$68.02, while Quebecor Inc added 4.3 percent to C$45.20 and Canadian Tire Corp Ltd climbed 5.7 percent to C$149.89. The company also said sales at its established stores declined for the fourth straight quarter.
Significant strength is also visible among computer hardware stocks, as reflected by the 1.1% advance by the NYSE Arca Computer Hardware Index.
Traders work on the floor of the New York Stock Exchange in New York City, NY, May 18, 2017.
In other energy futures trading, wholesale gasoline rose 1 cent to $1.61 a gallon, while heating oil was little changed at $1.63 a gallon. Travel-review website operator TripAdvisor was down 2.7 percent.
USA gold futures gained 0.26 percent to $1,293.50 an ounce.
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Ibrahimovic, 35, was released in June after not being offered a new contract following a season-ending knee injury. Let us know your thoughts in the comments section.
The price of gold also surged for the second day in a row as the December bullion contract advanced US$10.80 to US$1,290.10 an ounce.
Meantime, on the commodity front oil prices fell 2 per cent while gold has maintained its two month high.
The dollar slipped to 109.04 yen from 109.26 late Thursday.
The last time the S&P closed down more than 1 percent was May 17 when it fell 1.8 percent. The euro fell to $1.1791 from $1.1774.
South Korea's KOSPI fell 1.7 percent to its lowest since May 24, but its losses for the week are a relatively modest 3.2 percent.
FTSE ends down as shares hit by US-North Korea tensions
In Europe, the Stoxx 600 Index finished the day with a decline of 1 percent from the previous close. FINANCIALS FALLING: Several financial sector companies also helped pull down the market.
For the week, the Dow is down 1.1%, its biggest one-week drop since November.
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