LONDON: Stocks markets diverged on Thursday as traders digested economic data on both sides of the Atlantic and China's plans to tighten regulation across more sectors.
The Dow and S&P 500 retreated from record highs in early trading, a day after investors were buoyed by signs that consumer price inflation is cooling. The tech-heavy Nasdaq also declined.
The fall came after fresh data on Thursday showed wholesale price inflation accelerated in July.
Wall Street was "showing a muted reaction thus far to a hotter-than-expected read" in the producer price index, said Schwab analysts.
The consumer price index a day earlier had eased concern that the Federal Reserve could imminently unwind its massive stimulus measures to prevent the economy from overheating.
US unemployment claims, meanwhile, fell last week in the latest sign of an improving job market.
US stocks pull back from records as investors weigh data
The Paris and Frankfurt indices were up but London's FTSE 100 fell, even as official figures showed Britain's economy rebounded in the second quarter as it started to emerge from lockdown.
Asian equities closed mostly lower as China signalled additional anti-monopoly rules and penalties over the next five years.
The dollar meanwhile held firm.
Oil prices fell as the International Energy Agency said global crude demand was expected to grow slower than previously forecast this year with the spread of Covid's Delta variant prompting fresh lockdowns.
Stocks had a largely positive week after a recent run of pressure caused by concerns about the fast-spreading Delta variant.
But Asian stocks took a slight hit Thursday after guidelines published by the Chinese Communist Party's top decision-making body called for "centralised special rectification" -- propaganda speak for further government intervention.
Sectors including finance, public health, education and food and drug manufacturing would be targeted, the guidelines said.
A regulatory crackdown on Chinese sectors ranging from tech to education had already roiled markets in recent months.
OANDA's Jeffrey Halley said the reason that Asian stock market losses had not been so steep on Thursday might be because "investors are being more accepting of the 'new normal'".
Key figures around 1400 GMT
New York - Dow: DOWN 0.3 percent at 35,393.69 points
London - FTSE 100: DOWN 0.4 percent at 7,192.21
Frankfurt - DAX 30: UP 0.7 percent at 15,939.58
Paris - CAC 40: UP 0.4 percent at 6,883.82
EURO STOXX 50: UP 0.5 percent at 4,225.53
Tokyo - Nikkei 225: DOWN 0.2 percent at 28,015.02 (close)
Hong Kong - Hang Seng Index: DOWN 0.5 percent at 26,517.82 (close)
Shanghai - Composite: DOWN 0.2 percent at 3,524.74 (close)
Euro/dollar: DOWN at $1.1730 from $1.1743
Pound/dollar: DOWN at $1.3837 from $1.3866
Euro/pound: UP at 84.77 pence from 84.67 pence
Dollar/yen: UP at 110.49 yen from 110.43
Brent North Sea crude: DOWN 0.2 percent at $71.23 per barrel
West Texas Intermediate: DOWN 0.3 percent at $68.99 per barrel