Wall Street stocks fell on Tuesday afternoon after Donald Trump said North Korea "will be met with fire and fury" if it threatens the US.
His comments came after a Washington Post report, citing US intelligence officials, said Pyongyang had produced a nuclear warhead small enough to fit inside its missiles.
The Nasdaq declined 0.21% to 6,370.46.
"Trump's response was aggressive and that's why the market turned lower," said Ken Polcari, a director at O'Neil Securities.
Hotelier Marriott International slumped more than 2%, a day after the firm said it expected limited growth in North America in coming months.
Investors were more forgiving of challenges facing Ralph Lauren and Michael Kors, which are trying to recapture shoppers' attention in a retail industry challenged by e-commerce and bargain-hunting.
Ralph Lauren stock climbed 13%, after the firm reported profit of $59.5m (£47.8m) in the quarter, as restructuring helped the firm reverse from a loss in the same period last year.
And Michael Kors Holdings soared more than 21%. The firm, which recently announced a plan to acquire high-end footwear company Jimmy Choo, forecast growth thanks to new stores and expansion in China.
Both Michael Kors and Ralph Lauren continue to face sales declines, but Michael Kors chief executive John D Idol said growth in the three months to the end of June was a good sign.
"We are encouraged by our first-quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan," he said.