The yield on the 10-year German bond, Europe’s benchmark bond, turned negative for the first time.
“It’s ironic that we’re having the Fed debating the next rise in interest rates when we are heading into an economy that is in a cyclical downturn. The Fed missed their window to begin to normalize policy three year ago,” said James Abate, chief investment officer at Centre Asset Management in New York.
“It is a genuinely unique environment. No one knows how this movie ends.” Abate said.
One bright spot was the 0.5 percent rise in U.S. retail sales in May, compared with a 0.3 percent rise analysts had expected.
At 9:36 a.m. ET (1336 GMT), the Dow Jones Industrial Average .DJI was down 27.63 points, or 0.16 percent, at 17,704.85.
The S&P 500 .SPX was down 1.42 points, or 0.07 percent, at 2,077.64.
The Nasdaq Composite .IXIC was up 6.19 points, or 0.13 percent, at 4,854.63.
Apple (AAPL.O) rose 0.87 percent and gave the biggest boost to all three indexes.
Nine of the 10 major S&P sectors were lower, led by a 0.46 percent drop in the telecom services index .SPLRCL.
Wall Street closed lower for the third straight session on Monday, dragged down by tech giants Microsoft (MSFT.O) and Apple (AAPL.O).
Twitter (TWTR.N) rose 5.7 percent to $15.38 after Goldman Sachs added the micro-blogging site to its list of companies that could be bought in the next year.
Declining issues outnumbered advancing ones on the NYSE by 1,536 to 1,073. On the Nasdaq, 1,129 issues rose and 1,106 fell.
The S&P 500 index showed one new 52-week high and one new low, while the Nasdaq recorded one new high and 18 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru- Editing by Don Sebastian)
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