Wall Street declined overnight, while the US dollar and Treasuries advanced, amid concern about the slide in oil prices.
US Treasuries gained, pushing the yield on the benchmark 10-year note five basis points lower to 2.25 percent in midday trading. The greenback strengthened, a day after the Federal Open Market Committee raised the new target range for the federal funds rate to between 0.25 percent and 0.5 percent, up from zero to 0.25 percent. Chair Janet Yellen signalled any further rate hikes will be gradual.
Oil weakened amid ongoing concern about the worldwide glut and the global economy. West Texas Intermediate traded 2 percent lower at US$34.84 a barrel after falling as low as US$34.76 earlier in the day, while Brent last traded 20 cents weaker at US$37.19 a barrel.
"Bearish fundamentals are hanging over the oil markets like storm clouds, with no break in sight or relief in the near future," Chris Jarvis, founder of Caprock Risk Management, an oil market consultancy in Frederick, Maryland told Reuters. "The dollar is moving higher too."
Wall Street moved lower. In 11.58am trading in New York, the Dow Jones Industrial Average shed 0.8 percent. In 11.43am trading, the Standard & Poor's 500 Index dropped 0.9 percent, while the Nasdaq Composite Index declined 0.7 percent.