"While not necessary unexpected - as the USA had to respond to threats made by North Korea that they will fire rockets due to land just off the coast of Guam soon - new comments by Trump propelled stocks lower".
FINANCIALS FALLING: Several financial sector companies also helped pull down the market.
But in the US, Wall Street stocks rose as investors waded back into the market following a three-day sell-off, with high-flying technology companies like Apple and Microsoft doing especially well. Oil prices veered lower as early gains faded.
The Nasdaq Composite Index plunged 2.1% to 6216.87 and the Standard & Poor's 500 Index dropped 1.45% to 2438.21. It is poised to end the week down 1 percent.
Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the USA is prepared to take military action against North Korea. In the previous session, USA stocks finished in the red.
The hope that the Fed will have to slow its rate-hike path appeared to stop, at least for now, the near $1-trillion loss in world stocks valuations this week triggered by the war of words between Pyongyang and Washington.
Korea's Samsung Electronics fell 2.8% Friday and was down 6.1% on the week.
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Retailers slid after department stores Macy's and Kohl's both said same-store sales continued to decline in the second quarter.
The major European markets are also seeing continued weakness on the day. Its shares tumbled $11.35 to $61.99.
BAD TRIP: Priceline Group slid 8.1 percent after the online travel booking service issued a profit forecast that was weaker than analysts were expecting.
Bond prices were little changed. The yield on the 10-year Treasury note fell to 2.23 percent from 2.26 percent late Tuesday.
Benchmark U.S. crude added 39 cents to settle at $49.56 a barrel on the New York Mercantile Exchange.
Manuel Oliveri of Credit Agricole said about the single currency,"The euro has become more correlated to risk in recent weeks and sentiment is still a bit cautious", adding "though the euro upside trend is likely to remain intact over the longer term". Brent crude dipped 5 cents to $52.18 a barrel. The euro slid to $1.1742 from $1.1752. 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 OVERSEAS: In Europe, Germany's DAX fell 1.1 percent, while France's CAC 40 slid 1.4 percent. Britain's FTSE 100 sank 1.4 percent.
There were falls of almost 2% on South Korea's Kospi and Hong Kong's Hang Seng, with markets in mainland China and Australia also down - taking their cues from sharp losses on Wall Street earlier. South Korea's Kospi fell 0.5 percent. The Dow is down 98.98 points or 0.5 percent at 21,949.72, the Nasdaq is down 65.83 points or 1 percent at 6,286.50 and the S&P 500 is down 16.77 points or 0.7 percent at 2,457.25.