US benchmark indices were trading lower ahead of Friday's close after producer prices increased more than expected in November.
The Dow Jones Industrial Average was down 0.6% at 33,590.8, while the Nasdaq Composite fell 0.3% to 11,051.7. The S&P 500 lost 0.4% to 3,948.2. Barring communication services, all sectors were in the red, led by energy, health, and materials.
The producer price index grew 0.3% for a third month in a row but higher than market expectations for a 0.2% gain. PPI advanced 7.4% annually, down from October's 8.1% advance, but above the consensus for a 7.2% rise.
The US 10-year yield was up 8.2 basis points at 3.58%, while the two-year rate gained 2 basis points to 4.33%.
West Texas Intermediate crude oil futures rose 0.2% to $71.59 per barrel.