Earlier on Thursday, North Korea revealed a plan to launch ballistic missiles toward a major US military hub in the Pacific.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, popped almost 11 percent to 11.02.
Nervous investors drove shares lower earlier in the week, after President Trump declared Tuesday that the US would react with "fire and fury" to further nuclear provocations from North Korea. The Nasdaq Composite took an even bigger hit, closing down 2.1% at 6,216.87. It is now on track for its biggest weekly drop since the week before the November 8 USA presidential election. On the Nasdaq, 1,596 issues rose and 1,112 fell.
The Nasdaq Composite, meanwhile, was facing its worst week since the one ended December 2, which logged a loss of just over 2%.
After a dip of as much as 0.52 percent earlier in the day, investors appeared to take some comfort in Tillerson's comments, said Richard Steinberg, managing director at HighTower Advisors in NY.
Matic targets Chelsea title
Six teams are very strong and you must be prepared. "There is a lot of games, it's a long season but I expect us to do well". We are the most physical league. "He's working very well and starting to understand or idea of football".
"With retail earnings, it would be interesting to see if expectations have fallen enough for these companies to beat them", Wiegand said. "This may suggest much is in the price, and therefore risk appetite is taking its own summer holiday", he said in a note to clients.
A report on consumer price inflation is likely to attract attention on Friday, with consumer prices expected to rise by 0.2 percent in July. Economists had expected productivity to increase by 0.7 percent.
There's a handful of high-profile economic data coming out of the Asia Pacific region to end the week, including: July house sales for New Zealand, the final reading of second-quarter growth as well as July retail sales for Singapore, and Hong Kong's second-quarter growth.
On the Fed speaker list, Dallas Fed President Rob Kaplan is scheduled to appear in a question-and-answer session at the University of Texas Arlington, in Arlington, Virginia, at 9:40 a.m.
Christian Hackenberg shows definite signs of progress in Jets' preseason opener
NY scored its lone touchdown when Josh McCown connected wtih Charone Peake on a 4-yard touchdown pass in the opening quarter. The good: Hack started 14-for-18 where the only incompletions were three drops and a pass tipped at the line of scrimmage.
A fresh batch of retail earnings is in focus, too, with Dillard's among several stocks within the sector set to plunge after reporting.
Downbeat corporate earnings weighed on major indexes on Thursday.
The yield on the 10-year Treasury bond fell to 2.2% and is approaching its lowest level of the year.
Gold held steady at two-month high with spot gold rising 0.1 percent to $1,287.83 per ounce, putting the precious metal on pace for its biggest weekly gains since April.
Justin Upton hammers walk-off two-run home run
Stanton went 3 for 4 with two runs scored and is hitting.382 (13 for 34) with eight home runs and 15 RBI in his last nine games. Mikie Mahtook singled against Belisle (0-2) starting the bottom half and Upton drove a high fastball into the left-field seats.
"When you have a market like we have had this year, and it has been amazingly calm, and you introduce a major source of uncertainty, there is bound to be some reaction", said Brad McMillan, chief investment officer for Commonwealth Financial.