BAD LOOK: Investor concerns about slowing growth in Nvidia's data center business weighed on the company's shares, even though the maker of graphics chips posted earnings that beat expectations. Morgan Stanley fell 70 cents, or 1.5 percent, to $45.61. USA -traded Nikkei futures fell 2 percent to their lowest since mid-May.In currencies, the yen rose 0.8 percent versus the greenback at 109.2 per dollar, the strongest level for the Japanese currency since mid June."The yen is the big story really". For the week, the index lost over 3% to register its biggest weekly loss since February of 2016.
President Donald Trump warned North Korea again on Thursday not to strike Guam or US allies, saying his earlier threat to unleash "fire and fury" on Pyongyang if it launched an attack may not have been tough enough. The strength in the sector came as gold for December delivery jumped USD10.80 to USD1,290.10 an ounce. Geopolitical risks can boost demand for assets considered safe-haven investments, such as gold.
US producer prices unexpectedly recorded their biggest drop in almost a year, and the number of Americans filing for unemployment benefits unexpectedly rose last week.
Seagate Technology gained 2.3 percent after investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company.
"The slight bias to the upside [in stocks] is a result of the CPI number".
The S&P 500 index had its biggest one-day drop in nearly three months on Thursday as investors fled riskier assets, with technology stocks leading the charge, in response to an increasingly aggressive exchange of threats between the United States and North Korea.
President Trump says North Korea has "disrespected our country greatly", adding his "fire & fury" warning "wasn't tough enough".
Financial markets have tended to quickly shake off North Korea's periodic saber-rattling in the past, dismissing it as bluster, but tensions have lingered this year amid signs that it is making progress in its ballistic missile program and on Trump's growing frustration with Pyongyang. With the sell-off on the day, the Nasdaq and the S&P 500 fell to their lowest closing levels in a month.
Sterling was last trading at US$1.3007, up 0.25 per cent on the day.
There were fewer signs of anxiousness in the markets Friday. It has been the leading S&P gainer so far this year, making it particularly vulnerable to a decline.
Most large-cap stocks fell across the board. Small-company stocks fell more than the rest of the market. News Corp tumbled 5.4% and REA Group slumped 6% after disappointing full-year results.