Oil futures were lower before an OPEC meeting expected to increase the world's supply of crude and after a report of a large stockpile draw in the United States.

The dollar fell from an 11-month high against a basket of major currencies as the Philadelphia Federal Reserve's gauge of US Mid-Atlantic business activity fell to a near 1-1/2 year low.

US equity investors sold shares on Thursday as they got some specific indications on the potential impact of US President Donald Trump's trade tariff stand-off with China. German carmaker Daimler cut its earnings forecast late Wednesday saying tariffs on cars sent from the United States to China would hurt Mercedes-Benz car sales.

"Our feeling had been there is some complacency built in to that expectation that it is more ploy than policy. But one of the first cracks in that argument right now is the Daimler announcement," said Eric Wiegand, senior portfolio manager at US Bank Private Wealth Management in New York.

"Investors are hopeful over time we will get to an agreement and there won't be a lot of negative consequences along the way but clearly it is still something we are waiting for clarity."

The Dow Jones Industrial Average fell 180.4 points, or 0.73 percent, to 24,477.4, the S&P 500 lost 16.09 points, or 0.58 percent, to 2,751.23 and the Nasdaq Composite dropped 60.98 points, or 0.78 percent, to 7,720.54.

The pan-European FTSEurofirst 300 index lost 0.93 percent and MSCI's gauge of stocks across the globe shed 0.56 percent.

Emerging market stocks lost 1.04 percent.

But, Argentina's MSCI stock index rose 7.6 percent, putting it on track for its biggest one-day percentage gain since August 2017.

Index provider MSCI said late Wednesday it would reclassify Argentina and Saudi Arabia as emerging market countries next year, broadening the investor base for both countries.

US Treasuries were also impacted by trade concerns. Benchmark 10-year notes last rose 9/32 in price to yield 2.8967 percent, from 2.928 percent late on Wednesday.

The 30-year bond last rose 15/32 in price to yield 3.0402 percent, from 3.064 percent late on Wednesday.

The dollar index fell 0.3 percent, with the euro up 0.4 percent to $1.1616.

The Japanese yen strengthened 0.42 percent versus the greenback at 109.90 per dollar.

Global benchmark Brent crude oil futures extended losses ahead of Friday's meeting of the Organization of the Petroleum Exporting Countries, where producers are expected to boost output.

US crude was unchanged at $65.71 per barrel and Brent was last at $73.13, down 2.15 percent on the day.