NEW YORK: Wall Street stocks declined early Wednesday as moves by leading oil-producing nations to restrict output added to worries about inflation.
Analysts said announcements by Saudi Arabia and Russia that lifted crude prices to multi-month highs on Tuesday would keep inflationary concerns at the forefront.
“The new narrative this week really (concerns) higher energy prices, combined with the back up we’ve seen in yields,” said Art Hogan of B. Riley Wealth Management, adding that the strong dollar also focuses attention on upcoming Federal Reserve decisions.
Wall St slips as rising Treasury yields weigh
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.2 percent at 34,557.29.
The broad-based S&P 500 shed 0.3 percent to 4,483.52, while the tech-rich Nasdaq Composite Index also lost 0.3 percent at 13,977.77.
Government data showed a rise in imports widened the US trade deficit in July. While the US economy has showed signs of slowing, resilient consumer spending has helped boost US trade.
Among individual companies, Enbridge fell 6.4 percent after agreeing to buy three gas utilities from Dominion Energy for $14 billion, including the assumption of $4.6 billion in debt. Dominion fell 1.5 percent.
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