Yields fall when prices rise. President Donald Trump warning the North would be met "with fire and fury". Germany's DAX declined 1.1%, the CAC 40 in France fell 1.7%, the FTSE 100 in London declined by 0.7%, Japan's Nikkei closed 1.3% lower, and the Shanghai Composite dipped 0.2%.
In the United Kingdom, the stock of TV giant ITV was down 1.9 percent in early trading, and Sky shares were down 0.5 percent, while Germany's ProSiebenSat.1 fell 1.2 percent. The S&P 500, a broader gauge of U.S. companies, fell 0.24 percent to 2,474.92.
Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programmes as Pyongyang's continues missile and nuclear tests in defiance of United Nations sanctions.
Trump's comments sparked a late afternoon selling on Tuesday, with the Dow ending a nine-day streak of closing records.
U.S. power key to countering China in Asia-envoy to Washington
The sanctions resolution targets North Korea's primary exports, including coal, iron, iron ore, lead, lead ore and seafood. North Korea pulled out of the talks in 2009 to protest global condemnation of a long-range rocket launch.
Investors kept a wary eye on escalating tensions between the US and North Korea. The stock fell $2.27 to $31.13. Both were coming off record highs.
The yield on Germany's 10-year government bond - the bloc's benchmark, which has the top Triple-A credit rating - fell with USA equivalents, the main beneficiaries alongside gold and the Japanese and Swiss currencies. The Labor Department said job openings jumped about eight percent and that fewer people were quitting their jobs. The number of people quitting their jobs also dropped. The NFIB small business optimism index rose to 105.2 in July from 103.6 in June.
FED WATCH: Investors looked ahead to an appearance Thursday by Bill Dudley, president of the U.S. Federal Reserve Bank of NY, for signs of the Fed's outlook on the economy. They are looking for confirmation that the Fed is sticking with plans for a possible December interest rate hike.
ANALYST'S TAKE: The U.S.jobs figure "was through the roof" and the NFIB survey "painted a much better picture for the U.S. economy than most believed", said Stephen Innes of OANDA in a report.
Trump tries diplomacy in countering North Korea's nuclear provocation
At a briefing on August 8, Trump said that any further threats from the North Koreans would be met with "fire and fury". North Korea says that new sanctions imposed by the UN Security Council were "unwarranted and unfair".
USA dollar, stocks slip: The dollar is weak against the pound and the yen.
The Canadian dollar cost 78.9 cents U.S. Euro zone stocks and blue-chips dropped 1 percent.
The S&P/TSX Composite Index settled into the red 1.62 points to close Tuesday at 15,256.35. Brent crude, the global standard, lost 28 cents to $52.09 a barrel in London. It declined 23 cents on Tuesday to $52.14.
OH boy, 4, shot in road rage incident
A four-year-old boy was shot in the head during an alleged drive-by shooting on I-90 east near Dead Man's Curve around 11:55 p.m. According to Hill's statement to the police, she did not know the people in the Pontiac or why they shot at her vehicle .