"There's not a fundamental reason why what we're seeing out of North Korea right now should affect stock market prices, but it's being used as the reason to sell off right now because we've been looking for it for so long", Schiegoleit said.
The data maintained concerns surrounding lower than expected United States inflation which could deter the Federal Reserve from raising interest rates again this year. It soared over 2 per cent in the previous two sessions, and is set for a weekly gain of 2.25 percent. Others anxious about lofty market valuations and pockets of weakness like the mounting red ink at JCPenney and Snap, both of which crashed to record lows on Friday.
He added that in China, the US and South Korea, stocks that are showing the biggest declines since the rise of tensions between the USA and North Korea are the companies that have risen most since June.
The South Korean won sank around 0.8 percent to 1,133.8 to the dollar, its lowest since July 14.
Subdued US inflation has stirred doubts about the chances of another Fed interest rate hike this year, weighing on the greenback.
Meanwhile, the Russell 2000 index of small-cap stocks finished out the week 2.7% lower, its biggest one-week decline since February 2016.More news: Horrified tourists watch woman drag daughter's body into woods
The index was showing signs of Greed just two days ago while the Dow was in the midst of a winning streak that included nine straight record highs.
Japan is the world's biggest creditor nation and there is an assumption Japanese investors may repatriate their foreign holdings in times of heightened global uncertainty.
"Starting late July, foreigners began profit-taking that focused on information and technology stocks", said Kim Young-jun, a senior researcher at Kyobo Securities Co. Viacom slid 60 cents, or 1.9 percent, to $30.17.
Sterling was last trading at $1.3007, up 0.25 percent on the day.
Meanwhile on the domestic front, US initial jobless claims for the week ended July 29 exceeded consensus estimates (http://www.marketwatch.com/story/US-jobless-claims-rise-by-3000-to-244000-2017-08-10), recording 244,000 versus 240,000 expected this morning.
Several financial sector companies also helped pull down the market.More news: United States military bases can now shoot down private drones
Gold prices picked up $7.40 to $1,286.70 U.S.an ounce.
The recent resilience of data on the USA economy has not dampened the latest climb, despite depressing prices earlier in the week as reports returned high employment figures ahead of further United States inflation information this week.
A broader measure of the dollar, the ICE Dollar index, which compares the buck to six rivals, was trading at 93.6450 compared with 93.7170 before the jobless claims release.
OIL: Benchmark U.S. crude lost 12 cents to $48.47 per barrel on the on the New York Mercantile Exchange.
With Asian bourses and USA stock futures weakening early on Wednesday, the safe-haven 10-year Treasury yield was last down 3 basis points.
Asian and USA equity markets had extended their sell-off overnight as a war of words between the US and North Korea intensified.More news: Changes to the National Security Council