The London market endured heavy losses on Friday as America's stand-off with North Korea inspired another round of selling.
Investors will get an update on consumer price inflation, watched for its influence on the Federal Reserve's interest-rate thinking, while shares of Snap Inc. and Nvidia Corp. may draw attention after their earnings releases late Thursday.
While the Nasdaq climbed 39.68 points or 0.6% to 6,256.56, the Dow inched up 14.31 points or 0.1% to 21,858.32 and the S&P 500 edged up 3.11 points or 0.1% to 2,441.32.
In the eurozone, the Paris CAC 40 lost 0.3 percent compared with the closing level on Wednesday.
USA trading volume has been low with summer setting in and Congress expected to be in recess until September 5.
Michael Hewson, chief market analyst at CMC Markets, said these comments brought an entirely predictable counter response from Pyongyang.
Overnight, Wall Street closed sharply lower after Trump, with fiery rhetoric, warned Pyongyang against attacking Guam or USA allies after it disclosed plans to fire missiles over Japan to land near the U.S. Pacific territory.
Stocks slide on continued concern over tension between USA and North Korea
The Toronto Stock Exchange's S&P/TSX composite index fell 57.36 points, or 0.38 percent, to 15,159.97 shortly after the open. The Dow and S&P 500 inched higher on the day but they both posted their largest weekly percentage drops since late March.
Stock markets around the world were under pressure on Wednesday amid increased tensions between the US and North Korea following comments from President Donald Trump, and big entertainment stocks were among the many decliners.
The Dow industrials and S&P 500 rose 0.2% in recent trading, though the S&P 500 is set to end the week down 1.4%, its biggest loss since March.
The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the election. But Mellor notes the rhetoric has reached a "different level". "So why buy risk assets (such as equities or credit) when the thematic at hand isn't going to resolve itself in the immediate short-term?"
Increased geopolitical concerns between the United States and North Korea limited the S&P 500's upward movement.
City Developments fell 4.5 per cent or 53 cents to $11.14, after posting a 17.9 per cent fall in net profit for the second quarter and announced a new CEO designate after Grant Kelley resigned.
Gold fell $2.10 to $1,262.60 an ounce.
Cayetano: ASEAN won't oust N. Korea from ASEAN Regional Forum
North Korea slammed the new United Nations sanctions as "fabricated" and warned there would be "strong follow-up measures". During their chat, Ri rebuffed the South's recent proposal to resume negotiations, calling the offer "insincere".
In other corporate news, shares of Snapchat parent Snap fell 13% after it reported earnings late Thursday that missed analyst forecasts.
The Bureau of Labor Statistics will publish its July inflation report at 8:30 a.m. ET. Eastern Time, alongside core CPI.
Emerging market stocks rose 0.29 percent. The precious metal miners benefited from the flight to safety, with bullion prices hitting near two-month highs on North Korean worries.
On the currency markets, the pound slipped 0.1% against the dollar to $1.2968 but rose 0.1% against the euro to 1.1034 euros. On Friday, fellow retailer J.C. Penney dropped 16% after its second-quarter loss exceeded expectations.
Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively.
Investors piled into safe-haven assets such as U.S. government bonds, gold and the Japanese yen and sold off shares.
Wall St opens higher after tepid inflation data
It has to be said that this rise is not only due to the increase in global risk but also due to the slight weakness in the dollar. Penney slumped as much as 18.25 percent to a record low after the retailer reported a bigger-than-expected quarterly loss.
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