While you were sleeping: UPDATED Wall Street slips along with oil

Wall Street moved lower ahead of Friday's speech by US Federal Reserve chairwoman Janet Yellen, who might offer clues on the timing of an interest rate hike which some Fed officials have recently suggested could be as early as next month.

"The rhetoric we've gotten from the Fed over the past week from numerous Fed officials has reminded the market that the Fed can raise rates at any meeting," New York-based Deutsche Bank private wealth management head of fixed-income trading Gary Pollack says.

"We'll be waiting anxiously to hear if Ms Yellen repeats that message, or backs away from it."

At the close of trading in New York, the Dow Jones Industrial Average fell 65.82 points, or 0.35%, to 18,481.48. The Nasdaq Composite Index dropped 0.8% to 5217.69 and the Standard & Poor's 500 Index slid 0.5% to 2175.44.

"The market over the past few weeks has been in a holding pattern, really not doing much of anything and the reason for that is everyone is waiting to hear what Ms Yellen is going to say," First Standard Financial chief market economist Peter Cardillo told Reuters.

"Of course, the markets might get surprised. The markets are looking for clarity and we might not get clarity."

The Dow fell as declines in shares of UnitedHealth and Merck, down 1.2% and 1.1% respectively, outweighed gains in shares of Wal-Mart and Nike, up 1% and 0.8%.

Oil and metals prices both declined, weighing on mining companies. US-traded crude oil declined 2.8% to $US46.77 a barrel, reversing Tuesday’s gains as reports of additional crude stocks overshadowed hopes Iran could agree to a production-freeze accord.

Gold fell 1.2% to $US1324.40 an ounce.

Rate hike chances rise
Expectations for a Fed rate hike in September have risen to 24% from 21% on Tuesday, Reuters reported, citing CME Group's FedWatch.

Meanwhile, a National Association of Realtors report shows existing home sales fell 3.2% to a seasonally adjusted annual rate of 5.39 million in July, down from 5.57 million in June. It also posted the first year-on-year drop since November 2015, the NAR says.

"Severely restrained inventory and the tightening grip it's putting on affordability is the primary culprit for the considerable sales slump throughout much of the country last month," NAR chief economist Lawrence Yun says,

"Realtors are reporting diminished buyer traffic because of the scarce number of affordable homes on the market, and the lack of supply is stifling the efforts of many prospective buyers attempting to buy while mortgage rates hover at historical lows."

Euro stocks rise, UK falls
In Europe, the Stoxx 600 Index ended the day with a 0.4% increase from the previous close. France's CAC 40 index and Germany's DAX index each added 0.3%.

The UK's FTSE 100 index fell 0.5% as mining stocks weighed on the market.

Glencore shares slid, closing 3.1% lower in London after the company reported a drop in first-half profit and says it plans to lower its debt load more than previously announced.

"After a difficult start to the year, the more constructive tone of markets in recent months has helped support the pricing of many of our key commodities," chief executive Ivan Glasenberg says.

"While we are highly cash generative at current spot prices, we remain mindful that underlying markets continue to be volatile. We are alert to and have a high degree of proven flexibility in adapting to changing market conditions."

(BusinessDesk)

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