San Francisco Frontiers - Dow pulls back from record after weeks of gains

"Today's pullback should be viewed as just a pause from what I would say was an extended price action," said Angelo Kourkafas of Edward Jones. "Markets will not move in a straight line."

All three US indices dropped, with the Dow shedding 1.3 percent, or 475 points, to finish at 37,082.00.

US equities have driven higher since late October, following a nearly unbroken path as inflation moderated and the Federal Reserve signaled plans for 2024 interest rate cuts.

Shares of FedEx sank around 12 percent as the transport company lowered its fiscal 2024 sales forecast, suggesting weakening demand.

But that was countered by a Conference Board survey showing an unexpected surge in consumer confidence in December.

The report easily topped analyst expectations, suggesting consumers are rapidly shaking off some of their recent pessimism about the state of the American economy.

US stocks got a small lift from the consumer data but weakened in the afternoon.

Wednesday's session marked "a breather in the markets," Kourkafas said. "With eight weeks of gains, we're getting a little extended."

In Europe, Frankfurt and Paris stocks ended little changed, but London's FTSE 100 rose by 1.0 percent after data showed UK inflation slowed in November to 3.9 percent -- the lowest rate since September 2021.

Britain has had the most stubborn inflation and the data sparked speculation the Bank of England could now decide to start cutting interest rates next year, having lifted them to a 15-year peak of 5.25 percent in order to bring down inflation from double digits.

However, concerns persist after core inflation -- which strips out food and energy costs -- eased only slightly to stand at 5.2 percent in November.

Asian stocks mostly rallied after another record Wall Street performance Tuesday.

Oil prices extended their recent uptick, which was fueled by companies suspending transit via the Red Sea owing to attacks on cargo ships by Yemen's Iran-backed Huthi rebels in solidarity with Gaza.

Brent North Sea crude jumped above $80 a barrel early Wednesday, but retreated from that level after US petroleum stocks showed an increase in both crude and gasoline supplies.

- Key figures around 2130 GMT -

New York - Dow: DOWN 1.3 percent at 37,082.00 (close)

New York - S&P 500: DOWN 1.5 percent at 4,698.35 (close)

New York - Nasdaq: DOWN 1.5 percent at 14,777.94 (close)

London - FTSE 100: UP 1.0 percent at 7,715.68 (close)

Paris - CAC 40: UP 0.1 percent at 7,583.43 (close)

Frankfurt - DAX: DOWN 0.1 percent at 16,733.05 (close)

EURO STOXX 50: FLAT at 4,533.82 (close)

Tokyo - Nikkei 225: UP 1.4 percent at 33,675.94 (close)

Hong Kong - Hang Seng Index: UP 0.7 percent at 16,613.81 (close)

Shanghai - Composite: DOWN 1.0 percent at 2,902.11 (close)

Euro/dollar: DOWN at $1.0941 from $1.0981 on Tuesday

Dollar/yen: DOWN at 143.63 yen from 143.84 yen

Pound/dollar: DOWN at $1.2633 from $1.2732

Euro/pound: UP at 86.59 pence from 86.24 pence

West Texas Intermediate: UP 0.4 percent at $74.22 per barrel

Brent North Sea crude: UP 0.6 percent at $79.70 per barrel

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I.Rodriguez--SFF