Trump had told North Korea to not "make any more threats" to the US or the country "will be met with fire and fury like the world has never seen". In a note to investors, Paul Christopher, head global market strategist, and Tracie McMillion, head of global asset allocation, suggest, "the threat of a nuclear weapon is certainly more serious than previous threats, but that threat also may increase the probability of a diplomatic solution".
Plans are being drawn up and will be ready by the middle of August, North Korea said.
The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, closed at its highest in about a month. Sony Corp. shares in Tokyo dropped 1.6 percent. On Wall Street, the future for the Standard & Poor's 500 index fell 0.4 percent and that for the Dow Jones industrial average lost 0.1 percent.
Travel website operator Priceline fell 6.54 percent, while travel-review website operator TripAdvisor was down 7.51 percent after both the companies issued disappointing forecasts.
The weakness among oil service stocks comes even though the price of crude oil for September delivery is inching up USD0.01 to USD49.18 a barrel. The Russell 2000 index of smaller-company stocks gave up 4.02 points, or 0.3%, to 1,410.15.
Stocks had pushed into positive territory, but dropped in the last hour of trading after President Donald Trump warned Pyongyang it will face "fire and fury" if it continues to threaten the United States.
Analysts said media and entertainment stocks also seemed to get caught up in the broader market drop, but emphasized it was often hard to isolate reasons behind specific stocks' movements.
Danny Rose apologizes to Spurs for abrasive interview, Pochettino responds
I rate him really highly - he was a brilliant component in the team and gave Conte adaptability. Dele Alli and Christian Eriksen were both excellent last season .
Tiger Woods to enter diversion programme after impaired driving arrest
Palm Beach County prosecutor Adrienne Ellis stressed that Woods was not being treated any differently than anyone else. Upon completion of that program, the DUI charge will be dropped from Woods' record.
Brighton vs Manchester City, Premier League
Guardiola has admitted such a lacklustre performance would have seen him sacked at his previous clubs Barcelona and Bayern Munich. Defenders Benjamin Mendy, Kyle Walker and Danilo have all come in along with goalkeeper Ederson and midfielder Bernardo Silva .
The back-and-forth came on the heels of reports the U.S. intelligence community has determined North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles.
In the United Kingdom, the FTSE 100 closed down 0.59%, or 44.67 points, at 7498, broadly in line with negative trends in European markets.
The yield on US 10-year Treasurys slid to 2.192% Friday from 2.211% Thursday.
Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts. The Dow closed up 0.05% and the Nasdaq was up 0.64%.
Beyond geopolitical concerns, investors continued to size up company earnings reports.
Semafo jumped 10.3 percent to C$2.99 after Credit Suisse raised its recommendation on the gold miner to "outperform" from "neutral" following its second-quarter results, and Finning International Inc rose 6.9 percent to C$27.63 after the heavy equipment company reported quarterly earnings that beat expectations and raised its dividend. It declined 23 cents on Tuesday to $52.14. The euro slid to 1.1752 dollars from 1.1793.