New York: US stocks fell on Wednesday, with the Dow Jones index shedding more than 100 points as a slide in oil prices and concerns about the fate of US tax cuts weighed on the mood.
Oil prices slipped for the fourth day, weighed by forecasts for rising US crude output and a gloomier outlook for global demand growth in a report from the International Energy Agency (IEA).
US crude futures were down 1.2 per cent at $55.05 per barrel and on track for their fourth day of losses. Brent lost 1.2 per cent to $61.45 per barrel.
Metal prices also slid as data from China stoked fears of a slowdown in the world’s top commodities consumer.
World stocks were set for their longest losing streak in more than six months on Wednesday as weaker commodities weighed, while the euro hit its highest levels in three weeks.
The MSCI world equity index, which tracks shares in 47 countries, fell 0.2 per cent and was set for its fifth straight day of declines, its longest run in the red since March.
Oil prices and weaker metals prices weighed on mining and energy stocks across Asia and Europe, which took their cues from the previous day’s stock declines in the United States.
The pan-European STOXX 600 index fell 1 per cent and at its lowest level since Sept. 13. The index is still up nearly 6 per cent so far this year.
The UK’s top share index, the FTSE 100, declined half a per cent while Germany’s export-oriented DAX fell 1 per cent, weighed down by a stronger euro, which had risen nearly half a per cent in European trading hours.
“It’s a risk-off day. The market is looking for a reason to pause,” said Aaron Clark, portfolio manager at GW & K Investment Management.
“There have been signs of weakness developing beneath the surface for a few days with the high yields and concerns about tax deal.” At 9:38am. ET (1338 GMT), the Dow Jones Industrial Average was down 148.11 points, or 0.63 per cent, at 23,261.36, the S&P 500 was down 18.41 points, or 0.71 per cent, at 2,560.46 and the Nasdaq Composite was down 59.18 points, or 0.88 per cent, at 6,678.70.
Target slid about 10 per cent after the retailer issued a disappointing profit forecast for the key holiday quarter.
Amazon-owned Whole Foods Market announced price cuts on best-selling grocery items and holiday staples.
Kroger fell 2.86 per cent, Costco and Kellogg slipped about 2 per cent each.
Snap was down 2.7 per cent after shareholders including T. Rowe Price and Soros Fund slashed stakes in the Snapchat maker.
Declining issues outnumbered advancers on the NYSE by 2,214 to 424. On the Nasdaq, 1,999 issues fell and 426 advanced.
