S&P 500, Dow stall after hitting record highs; oil falls

By Sam Forgione

NEW YORK (Reuters) - Major U.S. stock indexes eased back from record intraday highs on Wednesday and European shares gave back some gains to trade little changed as investors took a breather from recent rallies.

The benchmark S&P 500 hit 2,156.45, topping Tuesday's intraday record of 2,155.40, while the Dow hit 18,390.16 to top Tuesday's record intraday peak of 18,371.95, the third straight day of such peaks for the S&P and the second for the Dow. The FTSEurofirst 300 index of top regional shares earlier touched its highest in more than two weeks for the second straight day.

Shares had advanced partly on the view that the U.S. economy is on solid footing and on the expectation that central banks in most developed economies will continue to keep interest rates at rock-bottom levels. In addition to the S&P 500 and Dow hitting record closing highs Tuesday and intraday highs Wednesday, the Nasdaq turned positive for the first time in 2016 Tuesday.

Reduced political uncertainty as Theresa May was set to take over as Britain's prime minister in the wake of Britain's June 23 vote to exit the European Union, and Sunday's landslide victory for Japanese Prime Minister Shinzo Abe's ruling coalition in an election for parliament's upper house have also helped shares.

"After the substantial rally, the markets are now looking for added fuel. Earnings and the ensuing comments that companies make are going to be the judge and jury as to where we go from here," said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.

European basic resources stocks gained after a surge in copper prices, while travel and leisure stocks were boosted by gains in Playtech after its deal to buy Best Gaming Technology.

MSCI's all-country world equity index was last up 1.29 points, or 0.32 percent, at 409.68.

The Dow Jones industrial average was up 4.86 points, or 0.03 percent, at 18,352.53. The S&P 500 was down 0.04 points, or 0 percent, to 2,152.1. The Nasdaq Composite was up 4.67 points, or 0.09 percent, at 5,027.49.

Europe's broad FTSEurofirst 300 index was last up 0.04 percent, at 1,330.95.

Oil prices fell 2 percent after the International Energy Agency said a global supply glut was threatening market recovery.

Safe-haven assets such as U.S. Treasuries, gold, and the Japanese yen rebounded after falling Tuesday. Benchmark 10-year Treasury yields were last at 1.474 percent as higher yields attracted buyers. U.S. 10-year yields hit a 1-1/2-week high of 1.531 percent Tuesday.

"There's talk that people are adding to their Treasury positions, and we are continuing to see foreign buying on any type of pullbacks," said Mary Ann Hurley, vice president in fixed income trading at D.A. Davidson in Seattle.

Spot gold recovered from its lowest in nearly two weeks, and was last up 0.62 percent at $1,339.50 an ounce.

(Editing by James Dalgleish)