The heaviest weights on the market were tech stocks, which gave back some of their huge gains made over recent years from the frenzy around artificial-intelligence technology. Nvidia fell 2.1 per cent, and Broadcom sank 4.6 per cent.
Still, nearly as many stocks on Wall Street rose as fell, and the strongest forces keeping the S&P 500 from steeper losses were Exxon Mobil and other oil companies.
Exxon Mobil rose 3.5 per cent, and Chevron climbed 2.7 per cent as the price of a barrel of benchmark U.S. crude added 1.3 per cent to bring its gain for the year to more than 7 per cent.
Oil prices have rallied as protests have swept Iran, which is a member of the OPEC group that helps set crude prices. The protests could lead to disruptions in production and squeeze supplies of crude.
Besides the rise in oil prices, goldā€™s price also rose 0.9 per cent toward a record, in another signal of nervousness across financial markets.
In the bond market, Treasury yields sank as investors sought investments seen as safer. Several reports on the U.S. economy also came in mixed.
One said that shoppers spent more at US retailers in November than economists expected. That could be an encouraging signal about the main engine of the US economy, but economists pointed to some concerning signals underneath the surface.
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A separate report said prices rose modestly at the U.S. wholesale level in November. It followed a report on Tuesday that said inflation at the US consumer level was close to economistsā€™ expectations last month, though it remained above the Federal Reserveā€™s 2 per cent target.
A third report said sales of occupied homes were stronger last month than economists expected. Taken altogether, the data did little to change Wall Streetā€™s expectation that the Federal Reserve will cut its main interest rate at least twice this year to shore up the job market, likely beginning around June, according to CME Group.
The yield on the 10-year Treasury fell to 4.14 per cent from 4.18 per cent late Tuesday (US time).
In stock markets abroad, Japanā€™s Nikkei 225 rallied 1.5 per cent to another record as expectations grew that Prime Minister Sanae Takaichi may call general elections soon.
Indexes were mixed elsewhere. Stocks rose 0.6 per cent in Hong Kong but fell 0.3 per cent in Shanghai after a report showed Chinaā€™s trade surplus surged 20 per cent in 2025 to a record despite President Donald Trumpā€™s tariffs.
AP
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