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".
North Korea Threat: US, Japanese troops prepare for war
This comes after North Korea threatened to attack Guam earlier this week, following President Trump's " fire and fury " warning. Flatter flight paths could make them more threatening to extended targets, including, it now appears, the area around Guam .
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.
Children Die In Gorakhpur Hospital Due To Alleged Disruption Of Oxygen Supply
However, local sources said the legal action was on the cards against the firm accused of breaking the oxygen supply abruptly. Notably, CM Aditynath visited BRD hospital on Wednesday and inaugurated ten-bed ICU, a six-bed Critical Care Unit facility.
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.
Trump returns to the attack on North Korea with fresh threats
After Trump's " fire and fury " comment, Pyongyang announced it was examining plans for attacking the tiny Pacific island of Guam. Fazio's caption indicated he'd golfed with the president Wednesday at Trump's Bedminster , N.J., course. "We're getting close.
For the week, the Dow is down 1.1%, its biggest one-week drop since November.
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