Futures augured a weak start on Wall Street.
Outside the political arena, declines in a pair of technology stocks added to the cautious tone on the day.
U.S. Treasury long-dated yields dropped to six-week lows, pressured by U.S.
NASDAQ measures a number of indices reflecting the reaction of USA's high tech markets and business environments on the country's political and economic developments which have an impact on high tech markets.
The price of gold, a safe-haven asset, hit its highest levels in two months as North Korea and the United States exchanged more threats, with North Korea outlining detailed plans for a missile strike near the Pacific territory of Guam.
While the German DAX Index has edged down by 0.1%, the French CAC 40 Index and the UK's FTSE 100 Index are both down by 1%.
"Trump's comments about North Korea have created nervousness and the fear is if the President really means what he said: "fire and fury"," said Naeem Aslam, chief market analyst at Think Markets in London.
The stage was set for the US indexes to go lower early Wednesday as investors around the world reacted to the rising war of words between the United States and North Korea, pushing global market indexes lower.
"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said. Australia's S&P/ASX 200 edged down almost 0.1 per cent to 5,760.90, while South Korea's Kospi fell 0.5 per cent to 2,357.84.
The Japanese yen hit an eight-week high against the US dollar, and USA -traded Nikkei stock futures dropped 2 percent to their lowest since mid May. The S&P 500 is up 9 percent, while the Dow is up 10.6 percent.
After North Korea claimed Trump is "driving" the Korean peninsula to the "brink of a nuclear war", the president responded with a tweet suggesting the United States is prepared to take military action against the communist nation.
At 12:43 p.m. ET (1643 GMT), the Dow Jones Industrial Average was up 49.69 points, or 0.23 percent, at 21,893.7 and the S&P 500 was up 6.84 points, or 0.28 percent, at 2,445.05. The broader index closed at 2,319.71 points on Friday, down 3.1 percent from a week ago. The Fed, which raised its key interest rate in March and June, has signaled it plans a third rate hike before the end of this year.
Investors bought bonds after the Labor Department said the consumer-price index increased 0.1% in July from the previous month.
The Standard & Poor's 500 index slipped 0.90 points, or 0.04 percent, to 2,474.02. South Korea's Kospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent. The company also said sales at its established stores declined for the fourth-straight quarter.
Shares Snap fell 1.94, or 14%, to 11.83 after the Snapchat parent reported earnings late Thursday that missed analyst forecasts.
BONDS: Bond prices were rose.
Trading was thinner than usual, with Japanese markets closed for a public holiday. Australia's S&P/ASX 200 dropped 1.2 percent.