Wall Street moved lower as US President Donald Trump's threats to shut down the government if Congress does not fund a wall on the southern border revived concern about the administration's ability to move ahead with plans for tax reform.
In 1.02pm trading in New York, the Dow Jones Industrial Average fell 0.2 per cent, while the Nasdaq Composite Index slid 0.3 per cent. In 12.47pm trading, the Standard & Poor's 500 Index also fell 0.3 per cent.
"If we have to close down our government, we're building that wall," Trump said Tuesday at a rally in Phoenix. "One way or the other, we're going to get that wall."
Wall Street's fear gauge-the CBOE Volatility Index or the VIX-jumped 5.7 per cent to 12.00. US Treasuries rose, sending the yield on 10-year notes three basis points lower to 2.18 per cent.
"Trump saying he would be willing to shut down the government over the wall obviously doesn't really inspire much confidence in anyone," Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut, told Reuters.