US stocks erase early gains and drift into negative territory

With year-end celebrations around the corner, major US equity indices opened higher on Wednesday but quickly drifted into negative territory amid thin trading volumes. 

At the time of writing this report, the Dow Jones Industrial Average reversed over 20-points to 19,925, moving farther from the psychologically important 20,000 milestone. Meanwhile, the broader S&P 500 Index was down over 7-points to 2,260, while tech-heavy Nasdaq Composite Index gave-up 20-points and dropped to 5,465.

The incoming US economic data points have been supportive of expected stronger US economic growth and adding on the Trump-led optimism, lifting all the three major indices to record high levels. With no major market moving releases due, ahead of next week's monthly jobs report, holiday season led lower trading volumes might lead to strong market swings in either direction.

In other notable moves, the overall US Dollar Index continued gaining traction and has now moved closer to last week's 14-year highs. Meanwhile, WTI crude oil was trading back above $54.00 mark, in wake of optimism led by oil production cut deal beginning in January.