By Tanya Agrawal and Anya George Tharakan
Oil fell nearly 4 percent as major exporters struggled to agree to a production freeze to reduce global oversupply ahead of an OPEC meeting on Wednesday.
All components of the S&P energy index, which led the decliners with a 2 percent fall, were in the red.
U.S. stocks closed lower on Monday, their worst performance in nearly a month, as investors booked profits on the heels of a record-setting week.
Wall Street has rallied since Donald Trump's victory in the presidential election as investors expect his plans to increase infrastructure spending, cut corporate taxes and reduce regulation to boost the economy.
"I believe that the strong rally has played out, and now we're going to have a choppy market," said Andre Bakhos, managing director at Janlyn Capital.
"The market is looking for a keyhole view into a Trump economic world and until we get clarity, we're going to have choppy behavior."
Data showed the U.S. economy grew faster than initially thought in the third quarter.
Gross domestic product increased at a 3.2 percent annual rate instead of the previously reported 2.9 percent pace, the Commerce Department said in its second GDP estimate.
At 9:44 a.m. ET (1444 GMT) the Dow Jones industrial average was down 7.23 points, or 0.04 percent, at 19,090.67.
The S&P 500 was up 0.41 points, or 0.02 percent, at 2,202.13.
The Nasdaq Composite index was up 7.25 points, or 0.14 percent, at 5,376.07.
Six of the 11 major S&P sectors were higher, with the healthcare index's 0.63 percent rise leading the advancers.
UnitedHealth's 2.1 percent rise helped boost the sector.
Fed Governor Jerome Powell will speak on the economic outlook in Indiana at 12:40 p.m. ET.
Traders are pricing in an 89 percent chance for a rate hike in December, according to Thomson Reuters data. The Fed next meets on Dec. 13-14.
Tiffany was up 5.6 percent at $82.48 after the upscale jeweler reported its first rise in sales in eight quarters.
Shoe Carnival fell 12.4 percent to $26.91 after the footwear retailer reported lower-than-expected third-quarter results.
Advancing issues outnumbered decliners on the NYSE by 1,433 to 1,181. On the Nasdaq, 1,390 issues rose and 845 fell.
The S&P 500 index showed six new 52-week highs and no new lows, while the Nasdaq recorded 32 new highs and seven new lows.
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)