U.S. stocks posted weekly loss as tension between the United States and the Democratic People's Republic of Korea (DPRK) escalates.

For the week, the blue-chip Dow lost 1.1 percent and the broader S&P 500 erased 1.4 percent, while the tech-heavy Nasdaq decreased 1.5 percent.

U.S. President Donald Trump earlier issued a warning to the DPRK that appeared to threaten a nuclear war with the Asian country. In response, the DPRK warned of preemptive strikes against the U.S. military base of Guam in the Pacific.

Analysts said the news made investors a little uneasy, thus weighing on the market.

On the economic front, the Consumer Price Index for All Urban Consumers rose 0.1 percent in July on a seasonally adjusted basis, the U.S. Labor Department reported Friday, lower than market consensus of a 0.2-percent gain. Over the last 12 months, the all items index rose 1.7 percent.

The soft inflation data raised market expectation for the Federal Reserve to hold lower interest rates longer this year.

Just 38 percent of investors expected the central bank to rates again at the end of the year, down from about 45 percent, according to the latest CME Group's FedWatch tool.

In the week ending August 5, the advance figure for seasonally adjusted initial jobless claims was 244,000, an increase of 3,000 from the previous week's revised level, the Labor Department said on Thursday. The latest reading was higher than market expectations.

The Department said in another report on Thursday that the U.S. producer price index for final demand slipped 0.1 percent last month, reversing June's 0.1 percent gain.

July's drop missed market consensus of a 0.1-percent gain and was the largest decline since August 2016.

Meanwhile, traders also kept a close eye on latest comments from Federal Reserve officials.

St. Louis Federal Reserve President James Bullard said Monday that the central bank won't need to raise rates in the near term.

"The current level of the policy rate is likely to remain appropriate over the near term," he said.

In corporate news, U.S. social media company Snap posted a larger-than-expected loss and smaller-than-expected revenue, sending the stock down more than 10 percent on Friday.

The Walt Disney Company posted better-than-expected quarterly earnings but its sales missed market expectations. The media giant's stock slumped over 6 percent after the announcement on Wednesday.

U.S. retailer Michael Kors said on Tuesday that the company's sales in the quarter ended July 1 fell 5.9 percent, but much less severe than the 8.9-percent drop that Wall Street was expecting.

Total revenue for the first quarter came in at 952.4 million U.S. dollars, again topping analysts' estimates for sales of 918.6 million U.S. dollars.

With 90 percent of S&P 500 companies' earnings now reported following the fourth week of earnings season, results have exceeded analysts' expectations, with earnings growth tracking over 9 percent year-on-year, according to the latest BofA Merrill Lynch Global Research report.