Energy stocks fell along with crude prices as investors kept an eye on the latest company earnings and geopolitical news.
US stock futures were marginally softer.
Mr Trump's threat earlier this week, to unleash "fire and fury" on Pyongyang if it attacked, was ultimately dismissed as bluster by many investors.
The US Consumer Price Index (CPI) edged up 0.1% last month after staying flat in June and falling by 0.1% in May.
Many market participants have been calling for a significant decline on the S&P 500.
In the eurozone, the Paris CAC 40 dropped nearly 0.7 percent to 5,081.92 points compared with the closing level on Thursday. Yields on bonds move inversely to their price. The yield on the 10-year Treasury note held steady at 2.26 percent. Asian shares meanwhile have tracked the USA lower this morning.
Trump further ratcheted up the rhetoric in remarks this afternoon, suggesting that his "fire and fury" comments may not have been tough enough.
On Thursday, the CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the United States presidential election.
Investors said the week's swings were as much a result of earnings as geopolitics.
Avis Budget Group slumped 9.9 percent after the auto rental company cut its guidance following a weak second quarter. Only 3 of the 30 stocks in the Dow finished the day with a gain: IBM, Coca-Cola and McDonald's. "This is a normal fluctuation, it just seems so odd because we have hardly had any volatility", said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis.
Shares of Michael Kors ended up 21.5 per cent, after the luxury goods maker raised its full-year revenue forecast. Ten out of the S&P 500's 11 major sectors closed negative on August 8. Its shares slid $9.77, or 5.3 percent, to $174.02. Brent crude, used to price worldwide oils, added 4 cents to $52.74. The broader Topix Japan's Topix index fell -1.1%, the most since May 18. Natural gas gained 2 cents to $2.82 per 1,000 cubic feet. Copper rose 4 cents to $2.94 a pound.
US producer prices also fell unexpectedly during July.
The Korean story has seen the yen gain around 1.5 percent this week, its biggest rise since mid-May.
Markets overseas were mixed Tuesday.
Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts.
Not long after midday, the FTSE was down 1.17% to 7,410.07, with the more domestically focused FTSE 250 down 0.4%.
Against the Swiss Franc CHF=, the dollar erased earlier losses to traded little changed on the day.
In Asia, South Korea's benchmark Kospi index fell 1.1%, and the Nikkei in Tokyo sank 1.3%. The Hang Seng index fell 0.4% to 27757.09 points.
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