At the closing bell, the Dow Jones Industrial Average was down 23.93 points (0.27 per cent) to 8739.10 after an up-and-down session.
The Nasdaq composite fell 6.65 points (0.36 per cent) to 1853.08 while the Standard & Poor's 500 broad-market index shed 3.29 points (0.35 per cent) to a preliminary close of 939.14.
Analysts said Wall Street took a cue at the opening from overseas markets, after upbeat comments about the Chinese economy that fuelled gained in commodities. In the US, key home improvement retailer Home Depot's increased guidance boosted hopes that housing and the overall economy were improving.
But much of the focus was on commodities, including oil prices, which closed at eight-month highs above $US71 a barrel in New York.
Although some traders viewed the rise in commodities as a sign the global economy was emerging from its slump, others said this could put the brakes on a recovery.
"Rising oil prices essentially act as a direct, broad-based tax that impedes consumer spending on other items," said Fred Dickson at DA Davidson & Co.
"Most investors appear to be anticipating the recession bottoming out this summer and a quick economic rebound in the fourth quarter. Rising oil prices are one force that could lengthen the recession and add a growing dimension of pain to many American families. If oil prices suddenly race up to 100 dollars a barrel, a sustainable consumer led economic recovery would be difficult to achieve."
