Earlier in the week, Trump said the US would unleash "fire and fury" on North Korea if it continued to threaten the U.S.
The CBOE volatility index extends advance after Thursday's spike while the "Fear Gauge" is now at its highest point since the November election.
Investors' unease over escalating tensions between the USA and North Korea had weighed on stocks earlier in the day, pushing gold and bond prices slightly higher.
Rising tensions between North Korea and the United States were once again the theme of the day with only the release of much-awaited inflation figures out of the USA managing to divert attention away from developments on that front. According to the Associated Press, South Korea'sKospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent.
The dollar index, which gauges the greenback against the currencies of six major USA trading partners, was last 0.2% down on the day during afternoon European trading hours - it stood at 93.20.
The Dow Jones Industrial Average fell 94.55 points, or 0.43 per cent, to 21,954.15, the S&P 500 lost 19.51 points, or 0.79 per cent, to 2,454.51 and the Nasdaq Composite dropped 76.39 points, or 1.2 per cent, to 6,275.94.
The latest rhetorical escalation comes after North Korean state media reported that the country's military leaders were working on a proposal to launch four intermediate-range missiles into the sea less than 25 miles off Guam's coast.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, while Japan's Nikkei lost 1.3 percent as the stronger yen sapped investor appetite. Major U.S. indices had posted record highs in recent weeks.
"Given the great run we've had, seems like some sort of pullback wouldn't be surprising", said Michael Baele, managing director of investments at U.S. Bank Private Wealth Management. The Russell 2000 index of smaller-company stocks slipped 2 points, or 0.1 percent, to 1,370. EIA reported that U.S. crude inventories fell last week as refineries boosted output to the highest percentage of capacity in 12 years.
Markets are now awaiting USA consumer price data for July, due later today. Shares of J.C. Penney dropped 78 cents, or 17%, to $3.93 Friday after the department store's second-quarter loss exceeded expectations. The NYSE Arca Biotechnology Index plunged by 3.4% to its lowest closing level in well over a month.
It stood 0.16 percent down on the day at 109.03 yen per dollar by 1047 GMT.
The 30-year bond last rose 28/32 in price to yield 2.7759 percent, from 2.818 percent late on Wednesday.
Data showed the number of Americans filing for unemployment benefits unexpectedly rose last week, but the underlying trend remained consistent with a tightening labor market.
The company reported ($0.16) earnings per share for the quarter, beating the consensus estimate of ($0.29) by $0.13. Snap began floating on the United States stock market in March this year for an initial offer price of $17 a share.
He said that due to the wonderful policies of Nawaz Sharif, the country is fast moving towards prosperity and development. People had given mandate through their votes to Nawaz Sharif for the five year term, he added.
CBS News has learned as many as eight or nine USA diplomats had their assignments cut short because of their ailments. The mysterious incidents led to the United States expelling two Cuba officials from their Washington , D.C. embassy.
However, Edris and team-mate Yomif Kejelcha seized the initiative as the bell went and Farah struggled to go with them. In his last track race Farah quickly went to the front of the race in order to keep the pace with the unsafe Chelimo.
Ministry spokesman Khaled Megahed told state television that more than a 100 people were also injured in the collision. Have you read Trendiee Today? Abu Homs said he fears the death toll and the number of injured could rise further.
Lim's case, a government official said Tuesday, but the delegation was also to raise "other issues of regional concern". North Korea is ranked #1 on Open Door USA's World Watch List of countries where Christians face the most persecution.
Mauricio Pochettino spoke about Tottenham's lack of transfer activity but insisted the club will only sign the right players. The team is ready to compete. "I'm sure we'll add some players who will strengthen the squad, like every season".
The qualified approval by the auditor marks a step forward for Toshiba in maintaining its Tokyo Stock Exchange listing. It was good news for a company confronted with delisting fears and legal battles with Western Digital.
Zidane also warned the European champions against a Barcelona backlash at the Camp Nou on Sunday (kick off 2000GMT). The staff are doing a great job, we do not fail because of the relationship in the dressing room.
Nicola Fitton, Managing Director at Betsafe, said: "We are delighted to announce our new partnership with Conor McGregor ". McGregor invited Malignaggi to camp to gain experience sparring a high-level boxer ahead of the showdown.
A meeting presided over by Palaniswami said the appointment of Dinakaran as deputy general secretary was against party rules. Interestingly, neither faction is ready for a fresh poll when four more years are left before the next assembly polls.
Elon Musk's OpenAI Bot Just Crushed a Dota 2 Pro Gamer!
The match that has hit the headlines was meant to have three rounds against the crowd favourite player, Danylo "Dendi" Ishutin . The showdown took the form of an exhibition match staged on Friday at The International 2017, an annual esports tournament .
Brighton won't roll over for Man City, says Bruno
Arsenal manager Arsene Wenger is convinced that Chelsea will sign a number of other players in the summer transfer window. The Manchester City boss has spent close to £200 million on new players this summer - four of which cost more than £40m.
Trump tells Calvo he's behind Guam "1000%"
Mr Trump agrees, saying "They should have had me in years ago. frankly you could have said that for the last three presidents". He then reassures Mr Calvo, who he describes as a "hell of a guy", telling him the United States military is "rock solid".
White House's West Wing getting a makeover
Politico said White House press secretary Sarah Huckabee Sanders didn't immediately return requests for comment. New carpet, curtains and paint are part of the work that is going on in just a part of the White House.
700k contaminated eggs have been sold in the UK
It is unclear whether the meeting will involve all 28 European Union member states, or only affected countries. If consumed in large quantities by humans it can damage the kidneys, liver, and thyroid glands.
Perseid meteor shower peaks tonight
Its name comes from the point at which the meteors appear to come from - its radiant - in the constellation of Perseus. This year, the bright waning moon will make the meteors a bit trickier to see, as it outshines the smaller fireballs.
Washington Trust Bank Sells 1221 Shares of Mylan NV (MYL)
The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link . The Tricadia Capital Management Llc holds 4.48 million shares with $27.53 million value, down from 4.98 million last quarter.