US stocks fell for a fourth day on Wednesday as a World Bank forecast fuelled concerns about global economic weakness and copper prices sank, although a late-day rebound in energy shares left the market well off its lows after a volatile session.
The S&P energy index ended up 0.1 percent after falling as much as 2.6 percent. It rebounded late in the day as oil prices jumped by the most in more than two years ahead of options expiration. Crude oil prices remained near six-year lows despite the day's jump, however.
S&P 500 materials and financial sectors were the day's worst performers, both falling more than 1 percent.
The price of copper, a key industrial metal, touched its lowest in five and a half years, weighing on shares of producers including Freeport McMoRan Inc, after the World Bank cut its economic growth forecasts for this year and next.
Adding to investor concerns, US retail sales registered their biggest drop in 11 months in December The S&P retail index fell 0.8 percent.
The Dow Jones industrial average fell 186.59 points, or 1.06 percent, to 17,427.09, the S&P 500 lost 11.76 points, or 0.58 percent, to 2,011.27 and the Nasdaq Composite dropped 22.18 points, or 0.48 percent, to 4,639.32.
US crude oil settled up 5.6 percent and Brent ended up 4.5 percent, snapping a four-day slide.
The S&P 500 briefly broke below its 120-day moving average, a technical support level, and hit a new low for the year at 1,988.44. S&P e-minis also broke support and hit an intraday low for the year. The S&P 500 is now 3.8 percent below the record high reached on December 29.
Shares of copper producer Freeport McMoRan tumbled for a second day. Shares ended down 10.9 percent at $18.74 and the stock was the S&P 500's biggest percentage decliner.
J. P Morgan Chase & Co, the biggest US bank by assets, ended down 3.5 percent at $56.81 after reporting a 6.6 percent drop in quarterly profit. Wells Fargo & Co shed 1.2 percent to $51.25 after posting quarterly results.
A large trade in the options on the S&P 500's tracking ETF suggested positioning for a further decline in the market within the next week and a half.
A trader paid $1.23 a contract for 43,830 SPY puts at the $195 strike price, which corresponds to the 1,950 level on the S&P 500.
Declining issues outnumbered advancing ones on the NYSE by 1,856 to 1,238, for a 1.50-to-1 ratio on the downside; on the Nasdaq, 1,743 issues fell and 994 advanced for a 1.75-to-1 ratio favouring decliners.
The benchmark S&P 500 index posted 13 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 39 new highs and 130 new lows.
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