Wall Street fell as investors found little to soothe their nervousness over a potential downgrade of the US Federal Reserve's bond-buying program.
In late afternoon trading in New York, the Dow Jones Industrial Average dropped 0.84 per cent, the Standard & Poor's 500 Index fell 0.74 per cent and the Nasdaq Composite lost 1.03 per cent.
"There just isn't much news to offset the potential negative of what will eventually happen, which is the Fed tapering off. You don't have fundamental evidence that the Fed will or will not be tapering off soon, and the market is caught in the middle period," Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey, told Reuters.
The potential prospect of a taper in the Fed's US$85 billion of monthly bond-buying also tempered demand for a US 10-year debt auction.
The notes yielded 2.209 per cent at the sale, the highest since October 2011, while the bid-to-cover ratio was 2.53, the lowest in 10 months, according to Bloomberg News.