The influential financial stocks were among the biggest drags on the index, with Royal Bank of Canada down 1.5 percent to C$92.88, and Manulife Financial Corp falling 4.7 percent to C$24.43, its largest drop since early August previous year.
Guam which is more than 3,000 km (2,000 miles) to the southeast of North Korea, is home to about 163,000 people and a U.S. Navy base that includes a submarine squadron and a Coast Guard group, and an air base.
The Standard & Poor's 500 index fell 5.99 points, or 0.2 percent, to 2,474.92. Tensions have been rising in the Korean Peninsula, and reached a new level with President Trump's "threat" of "fire and fury" against North Korea if they should proceed with a missile strike against Guam, a U.S. territory located in the Pacific.
Investors, who took the North Korea report from Japan in their stride earlier in the day, lost their appetite for risk after Trump's comments to reporters during his vacation at his golf club in New Jersey.
"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY.
Washington Nationals star Bryce Harper suffers ugly-looking knee injury
Saturday's game was delayed three hours with more inclement weather and the rain conditions came into play right away. Harper was unable to put weight on his leg and was carried off the field by his hitting coach and the team trainer.
Both the Swiss franc and the yen have climbed against the dollar this week, after U.S. President Donald Trump warned North Korea that it would face "fire and fury" if it threatened the United States.
In commodities trading, United States crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut.
"That may have weighed a little bit" on markets, said Phil Guarco, global investment specialist J.P. Morgan Private Bank.
The euro edged down 0.1 percent to $1.1735.
In recent trading, the Nasdaq and the S&P 500 have fallen to new lows for the session.
Donald Trump says United States is 'locked and loaded' as war appears inevitable
Commenting on the issue, Kim highlighted that the time has come for the U.S. and North Korea to meet at the negotiating table. The United States has been threatened via a direct threat to Guam , which isn't just a host for Air Force and Navy bases.
With Asian bourses and US stock futures weakening early on Wednesday, the safe-haven 10-year Treasury yield was last down 3 basis points.
The VIX, a measure of how much volatility investors expect in stocks, jumped 10.4 percent.
Live Nation Entertainment Inc.(LYV) shares pared gains from strong earnings (http://www.marketwatch.com/story/live-nation-shares-rally-as-results-top-street-view-2017-08-09) reported late Wednesday and closed up 5.6% after reports that Amazon.com Inc.(AMZN) announced it was getting into the event-ticketing business. Gold gained 0.54 percent to $1,266 an ounce, but that is only its highest in less than a week. The euro slid to $1.1752 from $1.1793.
Prices did recover during early European trading, however, as Brent crude was last up 0.48% at $52.39 per barrel and West Texas Intermediate 0.49% higher at $49.41.
In Europe, Germany's DAX rose 0.3 percent, while France's CAC 40 added 0.2 percent.
Martin Keown predicts where Chelsea will finish this season
Arsenal and Manchester City love to hold possession, allow the fullbacks to attack more than defend. He said: "When I joined Man United previous year , I thought we needed a kind of Matic".
In Asia, markets were mostly lower after disappointing Chinese trade data. South Korea's Kospi fell 0.2 percent. Chinese blue chips are about flat but Hong Kong's Hang Seng index is down 0.3 percent.