North Korea on Thursday announced a detailed plan to launch a volley of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers, and dismissed President Donald Trump's threats of "fire and fury" if it doesn't back down.
The rhetoric between the USA and North Korea has continued to heat up, leading traders to look to safe havens such as gold and treasuries.
Meanwhile, investors moved money into assets seen as safe havens.
"I don't think there will be war on the Korean peninsula, nor is it likely, but both sides are choosing to raise tensions and that is not an optimal situation", Park said.
"There's uncertainty and caution as investors nervously eye the next foreign policy moves".
President Trump also said that he hopes the USA will never have to use its nuclear weapons.
On his flight back to Washington, Tillerson said he never considered re-routing the trip to avoid refueling in Guam. Eastern time. The Dow Jones industrial average slid 125 points, or 0.6 percent, to 21,923.
The major index futures are now pointing to a lower open for the markets, with the Dow futures down by 48 points.
Tokyo's Nikkei 225 tumbled 1.3 percent to 19,737.59 points and Seoul's Kospi fell 0.7 percent to 2,378.56. Or are people using these geopolitical concerns as an excuse to take money out of the market - tech stocks in particular?
The Canadian dollar was trading at 78.64 cents U.S., down from an average price of 78.71 cents United States on Wednesday.
Pyongyang may be looking to eventually use the existence of its nuclear weapons to negotiate a peace treaty with the United States to officially end the 1950-53 Korean War and remove USA troops from the South. "Safe-havens are bid and markets are a little uneasy".
Travel website operator Priceline fell 7.26 percent, weighing the most on the S&P and the Nasdaq, following a disappointing forecast.
The Swiss franc reversed a two-week losing streak, rising rose 1.12 percent versus the greenback at 0.96 per dollar. The Nasdaq composite fell 45 points, or 0.7 percent, to 6,324. Japan is the world's biggest creditor country and there is an assumption investors there will repatriate funds in a crisis. It rose $16, or 1.3 percent, to $1,278.60 an ounce. Financial companies and department store operators were among the big decliners. The euro edged down to $1.1726 from $1.1751. The yield on the 10-year Treasury note slipped to 2.21 percent from 2.25 percent late Wednesday.
Biotechnology stocks are turning in some of the market's worst performances on the day, resulting in a 2.4 percent drop by the NYSE Arca Biotechnology Index.
A meeting of South Korea's National Security Council was set to be held later Thursday, the presidential office Cheong Wa Dae said, apparently to discuss North Korea's fresh threat to stage a missile provocation against the United States. Gold and bond prices were headed higher. September-dated crude futures settled up 0.8%, or 39 cents, at $49.56 per barrel. Two supersonic bombers from Guam also flew over the Korean Peninsula last month.
Shares in Worldpay gained 1% in London trading.
Spot gold rose 0.3 per cent to $1,264.50 per ounce at 0324 GMT, while USA gold futures for December delivery rose 0.6 per cent to $1,270.40 per ounce.