In the first exchanges, the Dow Jones Industrial Average of blue chips shed 73.77 points (0.57 per cent) to 12,895.77 and the technology-dominated Nasdaq composite lost 11.32 points (0.46 per cent) to 2,452.80.

The broad-market Standard & Poor's 500 index dropped 7.63 points (0.54 per cent) to 1,399.86.

Wall Street opened with sentiment weak as crude oil reached a new record high price of 120.93 dollars a barrel amid new concerns over tight supplies and a struggling US currency.

Also hurting was 'an ugly earnings report from Fannie Mae,' according to Patrick O'Hare at Briefing.com.

The mortgage giant posted a net loss of 2.19 billion dollars and announced plans to raise fresh capital.

'Oil prices and corporate headlines will be the main drivers of the trading action,' he said. -- AFP