United States stocks rise after three-day slide; tech shares gain

Paterniano Del Favero
Agosto 12, 2017

Aug 11 (Reuters) - The three major USA stocks indexes were on track to snap a three-day losing streak on Friday, as investors bet that tepid inflation data would stunt US rate hikes, even as the United States and North Korea stepped up an aggressive war of words.

President Donald Trump kept the heat on North Korea, warning that the U.S. military is "locked and loaded" in the event of a misstep by the totalitarian state.

The Dow Jones industrial average closed 14.31 points higher at 21,858.32 after briefly dipping into the negative territory.

Robert Phipps, a director at Per Stirling Capital Management LLC in Austin, Texas, said he was reassured after Dallas Fed President Rob Kaplan said the Fed needs evidence of progress toward its inflation goal before raising rates.

"If earnings can stay strong and interest rates remain low investors can look beyond North Korea and continue to rally equities", said Phipps. They yielded 1.05 percent and 1.14 percent in when-issued trading.

Nearly US$1 trillion has been wiped out from global equity markets since Trump's vow on Tuesday to unleash "fire and fury" on North Korea if it threatens the US.

The tech-heavy Nasdaq composite index ended the week 1.5 percent lower at 6,256.56, including a 2.1 percent plunge Thursday, as President Trump delivered a warning to North Korean leader Kim Jong Un that the United States would respond to any further aggression.

However, the S&P Bank sub-sector fell 0.7 percent on dimming prospects of another rate hike this year since higher rates tend to boost bank profits.

Over the five days, the S&P 500 dropped 1.43 percent, one basis point shy of the year's biggest weekly drop, posted in March.

People walk by New York Stock Exchange (NYSE) in the financial district in New York, US, August 10, 2017.

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