Investing.com – U.S. stocks posted a weekly loss despite closing in positive on Friday, as ongoing U.S. and North Korea tensions limited gains while inflation data for July fell short of expectations, lessening the case for a third rate hike later this year.
U.S. President Donald Trump issued a new threat to North Korea, saying American weapons were "locked and loaded" as Pyongyang accused him of driving the Korean Peninsula to the brink of nuclear war.
Trump’s latest salvo to threats from North Korea came ahead of economic data, pointing to a continued slowdown in the pace inflation, curbing expectations of a third rate hike latest this year.
The Labor Department said on Friday the Consumer Price Index (CPI) edged up 0.1% last month after being unchanged in June. That lifted the year-on-year increase in the CPI to 1.7% from 1.6% in June.
Economists had forecast the CPI rising 0.2% in July and climbing 1.8% year-on-year.
Concerns over the slowdown in inflation is expected to be reflected in the minutes to the Federal Reserve’s July meeting due next week, as investors await further clues on future monetary policy.
Dallas Fed President Rob Kaplan on Friday downplayed the prospect of a third rate hike, saying the Fed’s key interest rate is getting close to a “neutral” level so the Fed should patiently wait for further evidence that inflation will rise before tightening policy.
On the corporate earnings front, Snap Inc (NYSE:SNAP) reported earnings on Thursday that missed Wall Street estimates on both the top and bottom line amid weaker-than-expected daily active user growth.
The Dow Jones Industrial Average closed higher at 21,858. The S&P 500 closed 0.13% higher while the Nasdaq Composite closed at 6256.56, up 0.12%.