A Chinese state-run newspaper said on Friday that China should make clear that it will stay neutral if North Korea launches an attack that threatens the United States, but that if the USA attacks first and tries to overthrow North Korea's government, China will prevent it doing so. Trump's comments followed reports the North has mastered a technology needed to strike the United States with a nuclear missile.
"Of course, it's all come at a time when share markets are due for a correction so North Korea has provided a flawless trigger".
Markets were also lower in Europe and Asia. The Japanese market was closed in observance of the Mountain Day holiday.
Wall Street put a floor under global equities on Friday after a weak inflation reading brought investors back into US technology and other stocks, but gold and the yen still added slightly to the week's gains as tensions continued to escalate between North Korea and the United States.
In an apparent response to Trump's tweet, a statement issued by North Korea's official KCNA news agency claimed the president is "driving the situation on the Korean peninsula to the brink of a nuclear war".
Overseas markets were also lower Wednesday.
The euro was down 0.3 percent at just over $1.17 and nearing a two-week low, while the New Zealand dollar tumbled a full 1 percent as its central bank head bluntly said he wanted it lower.
Gold, another classic safe haven asset, was trading at around $1,285 per ounce, up more than two percent this week and near a nine-week high.
The dollar index fell 0.3 percent, with the euro up 0.36 percent to $1.1812.
But "the yen may be expected to lose its safe-haven status if US-North Korean tensions continue to escalate", leaving the Swiss Franc, and possibly the US dollar, as the remaining beneficiaries of risk aversion, Emmanuel Ng, currency strategist at OCBC Bank in Singapore, wrote in a note.
USA crude oil crude futures edged up 5 cents to $48.64 per barrel.
Disappointing US inflation and jobs data have not helped the dollar.
The bombing of Pearl Harbor, for instance, resulted in a 3.8 percent drop in the S&P 500 on December 7, 1941. The Nasdaq composite lost 0.3 percent to 6,352.33. It soared over 2 percent in the previous two sessions, and is set for a weekly gain of 2.25 percent. Macy's sank 10.3 percent and Kohl's lost 5.8 percent.
European stocks have fallen for a third day on Friday and look headed for their worst week since early November a year ago, as US President Donald Trump's rhetoric on North Korea over the past few days made investors risk averse.
JAPAN MACHINERY DISAPPOINTS: Orders for machinery in June, considered a leading economic indicator, were slower than analysts had forecast and at their weakest since May 2016.
But Michael said the overall market was still expected to saw-tooth its way higher due in part to a batch of better-than-expected earnings and low interest rates, despite the shift toward raising rates.
Markets are now awaiting USA consumer price data for July, due later in the session.
US crude fell 0.41 percent to $48.39 per barrel and Brent was last at $51.68, down 0.42 percent on the day.