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.
Despite the past week's decline, the major indexes are in positive territory so far this year, led by the Nasdaq, which is up 16.2 percent.
Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control. But some economists say the Fed may stand pat for the rest of 2017 unless inflation accelerates in coming months.
Rio Tinto PLC (RIO) (RIO)(RIO) dropped 3.2%, Glencore PLC (GLEN.LN) lost 2.9%, Anglo American PLC (AAL.LN) fell 3.1%, and BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) gave up 2%.
"Saber-rattling between two of the world's least predictable leaders caused a wave of risk aversion to wash over global markets, fueling demand for traditional safe harbors", said Joe Manimbo, senior market analyst at Western Union Business Solutions.
NORTH KOREA: President Donald Trump warned North Korea of "fire and fury" this week in response to recent threats from Pyongyang, which said it was examining plans for attacking Guam, a US territory in the Pacific with a military base.
European stocks also fell sharply Friday, leaving the Stoxx Europe 600 with its worst weekly decline since November, just before the US presidential election was held.
"If the US and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.
Stock movers:Nordstrom Inc.(JWN) shares rose 0.7% after the retailer late Thursday posted earnings that beat expectations (http://www.marketwatch.com/story/nordstrom-shares-rise-after-retailer-tops-views-sales-rise-2017-08-10), along with a sales rise. Regions Financial shed 23 cents, or 1.6 percent, to $14.07. Higher interest rates can help boost banks' revenue from loans.
Mining shares were among biggest the decliners as investors shunned assets seen as more risky.
High-flying technology names suffered outsized losses on the day, with Apple falling 3.2 per cent, Amazon 2.6 per cent and Facebook 2.2 per cent. Biotech companies Celgene and Amgen lost 3.8 per cent and 2.6 per cent, respectively. Brent crude, used to price global oils, added 26 cents to $52.96.
Gold added $3.90 to settle at $1,294 an ounce. Silver gained 20 cents, or 1.2 percent, to $17.07 an ounce.
ASIA'S DAY: Earlier, Asia bore the brunt of the mounting geopolitical uncertainty, with South Korea's Kospi index closing down 1.7 percent at 2,319.71 and Hong Kong's Hang Seng ending 2 percent lower at 26,883.51. Copper rose 1 cent to $2.91 a pound. The yield on the 10-year Treasury note slipped to 2.21 percent from 2.25 percent late Wednesday. The euro fell to $1.1735 from $1.1752.
Major indexes in Europe closed mostly lower.
London's FTSE 100 dipped by about 90 points, or more than 1%, in morning trading on Friday, adding to a slump of more than 100 points the day before and taking it to its lowest level since May.
Sterling was last trading at $1.3009, up 0.27 percent on the day. Australia's S&P/ASX 200 edged down almost 0.1 percent. The Japanese markets were closed for a holiday.