Stocks on Wall Street slid across the board as more signs of an improving US economy failed to outweigh continuing concerns over euro-zone finances.Latest data showed New York manufacturing activity roared ahead this month after contracting in November
Stocks on Wall Street slid across the board as more signs of an improving US economy failed to outweigh continuing concerns over euro-zone finances.
Latest data showed New York manufacturing activity roared ahead this month after contracting in November, while US industrial production staged a modest rebound in November following a brief drop-off.
Overseas markets fell after ratings firm Moody's Investor Service put Spain's government bond ratings on review for possible downgrade.
Though starting on a positive note, and remaining there until mid afternoon, the Dow Jones Industrial Average was down 19.07 points, or 0.2%, to 11,457.47 at the close (10am NZ time).
In the previous session, the Dow reached its highest close since September 2008. The main losers were Alcoa, down 1.7%, JP Morgan Chase, down 1.4%, and GE, down 1.1%.
The Nasdaq Composite slipped 0.4% to 2617.22 while the S&P 500 index was down 0.5% to 125.23, also after both gained earlier in the session.
Other markets: Europe, Asia down
European stock markets closed lower on the Spanish rating review, which came one day after Standard & Poor's placed Belgium's ratings on watch with negative implications.
In Madrid, the IBEX 35 index fell 1.5% to end at 10,009.80. The Stoxx Europe 600 index fell 0.4% to 276.532, snapping a seven-session winning streak.
The UK's FTSE 100 index eased 0.2% to 5882.18, France's CAC-40 index fell 0.6% to 3880.19 and Germany's DAX index shed 0.2% at 7016.37.
Asian stock markets also ended mostly lower, with Hong Kong shares suffering big afternoon losses after news broke of the Spanish ratings review.
The losses in Hong Kong were led by energy-sector shares as crude-oil prices extended their decline. Cnooc slid 2.8% and PetroChina dropped 3.6%, while PetroChina fell 0.9% in Shanghai.
Hong Kong's Hang Seng Index tumbled 2% to 22,975.35, the Shanghai Composite lost 0.5% to 2911.41 and India's Sensex gave up 0.8% to 19,647.77.
Commodities: Oil up, gold down
Crude futures turned higher after US oil stockpiles posted their biggest weekly decline in eight years.
Crude inventories fell 9.9 million barrels last week, a much larger drop than expected. Total US crude and fuel stockpiles fell to the lowest level since November 2008, due in part to a sizable drop in imports.
Light, sweet crude for January delivery settled 34USc, or 0.4%, higher at $US88.62 a barrel in New York. Brent crude on the ICE futures exchange traded 99USc higher at $US92.20 a barrel.
News of slower-than-expected inflation and a stronger dollar weighed on gold futures in New York. The US seasonally adjusted consumer price index rose 0.1% in November, half of what economists expected.
The most actively traded contract, for February delivery, settled 1.3%, or $US18.10, down at $US1386.20 an ounce.
Currencies: Dollar up, euro down
The US dollar strengthened against the euro and the yen as the US economy improved and Spain was put under a ratings review.
The euro fell to $US1.3255, down from $US1.3411 late on Tuesday. The dollar rose to ¥84.04 from ¥83.64.
