Wall Street retreated from record levels on Wednesday as a drop in oil prices pressured energy stocks and weighed more heavily than a surge in Walt Disney.
A rally since late June has taken the S&P 500 up over 6 per cent in 2016, as continued low interest rates encourage investors to buy US equities, although many investors are concerned about high valuations.
The energy index fell 1.04 per cent, hurt by a drop in oil prices after the US government reported a surprise crude stockpile build.
Exxon Mobil’s 1.48 per cent drop was the top drag on the S&P 500 and the Dow.
“Once we saw inventories this morning, that certainly moved energy far lower and dragged almost everything else down,” said Tim Dreiling, regional investment director for The Private Client Reserve of US Bank.
At 2:39 pm, ET, the Dow Jones industrial average was down 0.33 per cent at 18,472.66 points and the S&P 500 had lost 0.43 per cent to 2,172.44. The S&P 500 has hit four record intraday highs this month.
The Nasdaq Composite dropped 0.51 per cent to 5,198.59.
Six of the 10 major S&P 500 indexes were lower. Trading volume was low in the absence of market-moving information in a traditionally low-volume season.
Shares of Walt Disney rose 1.52 per cent after the company reported results overnight and bought a 33 per cent stake in video-streaming firm BAMTech. The stock provided the biggest boost to the S&P 500 and the Dow.
SunPower shares sank 29 per cent after the company swung to a second-quarter loss, lowered its full-year revenue forecast and said it would reorganize its business.
Perrigo dropped 10 per cent after reporting a lower-than-expected profit and slashing its earnings forecast.
JD.com jumped 4.3 per cent after it reported revenue within its forecast. The stock gave the biggest boost to the Nasdaq.
Declining issues outnumbered advancing ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 2.02-to-1 ratio favoured decliners.
The S&P 500 posted 18 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 67 new highs and 31 new lows.