The S&P/TSX composite index was down 91.01 points to 15,126.32, after 90 minutes of trading.
On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928.
The FTSE 100 index tumbled yesterday, shedding 108.12 points to end the session 1.44 percent lower at 7,389.94, pressured by a selloff in homebuilders, which reacted to the latest house data, as well as by the ongoing geopolitical worries.
US equities steepened their losses late in the session after President Donald Trump said his earlier warnings to North Korea may not have been tough enough.
Tensions over North Korea weigh on stocks but boost gold
ASIA'S DAY: The earlier Asian session was heavily influenced by the sabre-rattling between the USA and North Korea. Offsetting the declines was a 0.4 percent gain by the materials group, which includes gold producers.
JAPAN MACHINERY DISAPPOINTS: Orders for machinery in June, considered a leading economic indicator, were slower than analysts had forecast and at their weakest since May 2016.
Advancing issues barely outnumbered decliner on the NYSE by a 1.15-to-1 ratio; on Nasdaq, a 1.10-to-1 ratio favoured advancers. It is now on track for its biggest weekly drop since the week before the November 8 USA presidential election.
Despite the past week's decline, the major indexes are in positive territory so far this year, led by the Nasdaq, which is up 16.2 percent. But was retreating in recent trade.
"We're still close to the all-time high so that makes people a little nervous too, so they might say now might be the time to take a little bit of money off the table". "And while risks remain elevated from a geopolitical perspective, valuations are not necessarily excessive, though full". Asian shares meanwhile have tracked the USA lower this morning. "I think a few investors are capitulating to it". Is that a reason to be?
Conte on Pedro, Morata, Wenger's comments and Chelsea's search for players
I know he was at Juventus but I don't think he was ever completely their No. 1 striker, slightly in and out at different times. It is the best players from all over the world playing for some of the top clubs in the world.
A small rise in a measure of United States consumer prices pointed to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year, which would be favourable to equity investors. Four that are controlled by Dhanin and his family - Charoen Pokphand Foods, CP All, Siam Makro and True Corp. - are ranked by analysts in the region's top 20 in terms of return potential over the next 12 months.
Market participants are looking to Friday's U.S. Consumer Price Index data.
Titled "Reckless game over the Korean Peninsula runs risk of real war", the editorial suggested China will stay neutral if North Korea strikes first, but will intervene if the U.S.is the first mover.
United Kingdom mid-cap stocks also came under pressure, falling 0.8 per cent as shares in Dixons Carphone slumped more than 7 per cent to their lowest level since the aftermath of the Brexit vote last June. Domino's Pizza also fell after the takeaway firm agreed a partnership with its London franchise business. The precious metal is often seen as a safe haven for investors during times of uncertainty.
European Stocks Deepen Declines as North Korea Tensions Linger
An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 per cent, led by Toronto-based Yamana Gold Inc. United States crude shed 12 cents to $49.05 a barrel, while Brent crude fell 18 cents a barrel at $51.96 a barrel.
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