The smaller than expected increase in consumer prices has led to optimism that the Federal Reserve will not be in a hurry to raise interest rates.
"The slight bias to the upside (in stocks) is a result of the CPI number".
"The market's dent only lasted for a week in April when tension rose between them after North Korea launched a missile".
Others believe North Korea has no intention of backing down.
The Swiss franc had rallied after U.S. President Donald Trump warned North Korea earlier this week that it would face "fire and fury", if it threatened the United States. The stock was the biggest decliner in the S&P 500, losing $166.50 to $1,882.50.
"There's not a great incentive to buy big", said Lerner of SunTrust Advisory.
The Dow Jones Industrial Average ended down 33.08 points, or 0.15 per cent, at 22,085.34, snapping a 9-day streak of closing records. The S&P has lost more than 1 percent on only three days this year.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent in early trading, while Japan's Nikkei was 1.2 percent lower as the stronger yen sapped investors' appetite. The stock lost 78 cents to $3.93.
The UK benchmark index has fallen deep into the red for a second day, staying on track for a hefty loss this week, pressured by the ongoing tension between the U.S. and North Korea which has fuelled a selloff in cyclical stocks.
USA crude was down 0.9 percent at $48.16 per barrel, on track for a weekly loss of 2.9 percent.
In terms of forex market movements, the USA currency lost significant ground relative to majors including the yen, sterling and the euro - most notably the latter one - as the news on inflation went public.
The dollar index .DXY , which measures against a basket of currencies, fell 0.05 percent.
"Heightened geopolitical risks overnight have seen the markets flip from risk-on to risk-off and we have to wait and see how long this move runs before adding some positions", said Viraj Patel, an FX strategist at ING in London. Twenty-First Century Fox gave up 46 cents, or 1.6 percent, to $27.57. The Nasdaq and the S&P 500 are rebounding after ending Thursday's trading at their lowest closing levels in a month.
Investors also drew some encouragement from new government data showing USA inflation at the consumer level inched higher last month.
"Investors need more convincing over the possibility of higher USA interest rates this year and this should come in the form of rising inflation".
Bond prices rose. The yield on the 10-year Treasury note slipped to 2.25 percent from 2.26 percent late Tuesday.
As of 5:00 p.m. EST on Tuesday, gold was sitting at $1,260.90 per ounce; the yellow metal soared to a seven-week high midway through last week. They plunged 2 percent on Thursday on fears of slowing demand and lingering concerns over a global oversupply.
In oil, the price of Brent crude sunk by 0.5% to 51.65 United States dollars a barrel amid concerns about over supply in the market.