South Korean stocks ended lower Friday as foreign investors sold local stocks amid escalating tensions between North Korea and the United States.
Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific territory of Guam.
"Markets are looking for any reason at all for a reset".
"If the data continues to come in on the softer side, the market might start to price the Fed staying on hold this year", said Sireen Harajli, FX strategist at Mizuho in NY.
Investors, who took the North Korea report from Japan in their stride earlier in the day, lost their appetite for risk after Trump's comments to reporters during his vacation at his golf club in New Jersey.
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.
In the United Kingdom, the stock of TV giant ITV was down 1.9 percent in early trading, and Sky shares were down 0.5 percent, while Germany's ProSiebenSat.1 fell 1.2 percent. Sony Corp. shares in Tokyo dropped 1.6 percent. The Russell 2000 index of smaller-company stocks gave up 19 points, or 1.4 percent, to 1,377.
Gains among technology companies helped snap a three-day losing streak for US stocks Friday, though the market ended with its worst weekly loss since March.
Bond prices rose. The yield on the 10-year Treasury fell to 2.20 percent.
Investors also drew some encouragement from new government data showing USA inflation at the consumer level inched higher last month.
"Given the great run we've had, seems like some sort of pullback wouldn't be surprising", said Michael Baele, managing director of investments at U.S. Bank Private Wealth Management.
Traders took heart in a measure of USA consumer prices that increased only slightly in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.
UNDERCOOKED: Blue Apron slumped 17.1 percent after the meal kit seller reported a sequential decline in customers in the second quarter due to a planned reduction in marketing.
Perrigo surged 17.6 percent after the drugmaker raised its full-year adjusted profit forecast.
Selling was broad. Declining issues outnumbered advancing ones on the NYSE 6-to-1; on Nasdaq, a 3.60-to-1 ratio favored decliners. Top automaker Hyundai Motor fell 2.07 percent to 142,000 won.