On the economic front, data is expected to show that US consumer prices likely rose in July after being unchanged the prior month.
The South Korean Won is also suffering, falling by 0.8% to a four-week low against the USA dollar. Heating oil fell 1 cent to $1.63 a gallon.
"Trump's response was aggressive and that's why the market turned lower", said Ken Polcari, Director of the NYSE floor division at O'Neil Securities.
South Korean stocks ended slightly lower on August 10 as foreign investors offloaded local stocks on profit-taking amid escalating tensions over North Korea's provocations.
Six of the 11 major S&P sectors were higher, with the technology's .SPLRCT 0.36 percent rise leading the advancers.
The Dow Jones Industrial Average (DJIA - 22,048.70) ended with a loss of 36.6 points, or 0.2%.
Overnight US and Asian stock markets slipped into risk-off mode late on, as Trump warned North Korea would be "met with fire and fury and, frankly, power the likes of which the world has never seen before" if it continues to threaten the US.
USA stocks have risen week after week this year - with the S&P up more than 9 percent - in extremely low volatility, as strong corporate earnings and an improving global economy offset disappointment that President Donald Trump's promises to lower corporate taxes and implement a massive infrastructure spending have so far failed to see the light of day. Equity screens were also awash with red in Asia as investors fled to safe haven assets after US President Donald Trump doubled down on his North Korea rhetoric.
The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the USA presidential election on Thursday, but was down 1.22 points at 14.82 points on Friday.
The 30-year bond last /32 in price to yield 2.7933 percent, from 2.794 percent late on Thursday.
Michael Kors climbed 21.5 percent after the luxury handbag and apparel designer and retailer's latest quarterly results beat analysts' forecasts as sales improved. The collapse of sterling after the Brexit vote past year helped boost profits by 16%, the company said, adding that strong United Kingdom operations and acquisitions had also contributed to the rise. Gold hit a two-month high of $1,278 an ounce amid the nervousness.
Blue Apron Holdings fell 18% after saying it lost more money than analysts had expected in its first quarterly earnings report since going public in June.
Charter Communications rose 2.9 per cent on news Altice is exploring a bid for the cable giant. Britain's FTSE 100 was down 1.1 percent.
In Europe, Germany's DAX rose 0.3 percent, while France's CAC 40 added 0.2 percent. South Korea's Kospi fell 0.2 percent. Hong Kong's Hang Seng dipped 1.1 percent to 27,444.00.