Australian stocks led regional markets lower this morning: The ASX dipped by 1.5% as major banks led the falls.
That prompted North Korea to say it was considering firing missiles at Guam, a USA -held Pacific island. Oil prices veered lower as early gains faded. The S&P 500 was down 6 points, or 0.25 percent, and the Nasdaq was down 35 points, or half a percent.
Shortly after Trump made his remarks, North Korea said it was "carefully examining" the idea of a missile strike on Guam, a U.S. Pacific territory.
It was not only the threat of conflict with nuclear-ambitious North Korea.
About 7.5 billion shares changed hands on US exchanges, well above the 6.25 billion average for the last 20 days.
Mounting tensions between the USA and North Korea have weighed on equity markets, sending the majority of the Asian and European bourses into red territory and inducing a spike in volatility.
All three stock gauges closing down for a third day in a row last occurred since April 13, according to WSJ Market Data Group. Advanced Micro Devices gave up 50 cents, or 3.9 per cent, to $12.33.
Disappointing earnings also helped pull the market lower Wednesday.
Global benchmark Brent lost 0.7 per cent to $51.53, after Thursday's 1.5 per cent drop.
Weakness in U.S. Treasury yields may also be supporting the yen, some analysts said.
Shares of Apple, Amazon and Facebook fell more than 2% Thursday. Tahoe shares improved 14 cents, or 2.1%, to $6.69.
UNDERCOOKED: Blue Apron slumped 17.1 per cent after the meal kit seller reported a sequential decline in customers in the second quarter due to a planned reduction in marketing. The share price of G4S, the world's largest security group, fell 5.38% amid its organic growth cooling down in emerging markets.
Meantime oil has slipped as producers increased their exports, while Gold is trading higher.
The yield on the 10-year Treasury bond fell to 2.2% and is approaching its lowest level of the year.
United States producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week. Brent crude, used to price global oils, declined 29 cents to $51.61 per barrel in London. Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce.
The exercise around Japan's southern Kyushu island involved two U.S. Air Force B-1B Lancer bombers and two Japanese F-2 jet fighters, Japan's Air Self Defence Force (ASDF) said in a news release. For most of the day, the gold prices corrected lower on the back of some strong recovery in the dollar strength and they moved lower towards the support region near 1250. The ASX200 has since rallied back slightly, but is still down more than 1% on the day.
European markets were also struggling amid the simmering political stand-off, with the Cac 40 in France dropping 1.4% and Germany's Dax tumbling by 1.1%.
Asian markets closed mixed: Tokyo's Nikkei fell 0.3 per cent, Hong Kong's Hang Seng added 0.6 per cent, and China's Shanghai Composite firmed 0.1 per cent up.