Stocks have moved mostly higher in morning trading on Friday following the sell-off seen in the previous session. The major averages have all moved to the upside, with the Nasdaq and the S&P 500 bouncing off their lowest closing levels in a month.
Currently, the major averages are hovering in positive territory. The Dow is up 48.61 points or 0.2 percent at 21,892.62, the Nasdaq is up 35.83 points or 0.6 percent at 6,252.71 and the S&P 500 is up 7.77 points or 0.3 percent at 2,445.98.
The strength on Wall Street is partly due to bargain hunting, with traders picking up stocks at reduced levels following the pullback seen over the past few sessions.
Positive sentiment was also generated by a report from the Labor Department showing a modest uptick in consumer prices in the month of July.
The Labor Department said its consumer price index inched up by 0.1 percent in July after coming in unchanged in June. Economists had expected prices to rise by 0.2 percent.
Excluding food and energy prices, core consumer prices still crept up by 0.1 percent in July, matching the increases seen in the three previous months. Core prices had also been expected to climb by 0.2 percent.
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.
Buying interest is somewhat subdued, however, as the ever-escalating war of words between President Donald Trump and North Korea continues to raise geopolitical concerns.
Trump suggested in remarks on Thursday that his comments threatening North Korea with “fire and fury” may not have been tough enough.
“I will tell you this, North Korea better get their act together or they’re going to be in trouble like few nations ever have been in trouble in this world,” Trump said.
Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the U.S. is prepared to take military action against North Korea.
“Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!” Trump tweeted.
North Korea responded with a statement by its official KCNA news agency claiming Trump is “driving the situation on the Korean peninsula to the brink of a nuclear war.”
Computer hardware stocks have shown a strong move to the upside on the day, driving the NYSE Arca Computer Hardware Index up by 1.5 percent. The index is bouncing off its lowest closing level in six months.