U.S. stocks lost ground Wednesday, with the Dow Jones Industrial Average retreating from a record high, after the World Bank lowered its projection for this year's global economic outlook.
The blue-chip Dow snapped a five-day winning streak and logged a three-digit decline of 102.04 points, or 0.60 percent, to 16,843. 88, retreating from its record closing high set Tuesday.
The broader S&P 500 dipped 6.90 points, or 0.35 percent, to 1, 943.89. The Nasdaq Composite Index lost 6.06 points, or 0.14 percent, to 4,331.93.
With no major economic data from the United States due on Wednesday, investors turned their focus to the Washington-based World Bank's twice-yearly Global Economic Prospects report released Tuesday.
The World Bank forecast the global economy to grow 2.8 percent this year, down from its January estimate of 3.2 percent, as developing countries are heading for "disappointing growth," while high-income countries are gaining momentum, according to the report.
Bad weather in the United States, the crisis in Ukraine, rebalancing in China and political strife in several middle-income economies slow progress on structural reform, said the report.
On the economic front, U.S. mortgage applications posted strong growth last week following the Memorial Day holiday, according to a survey released by the Mortgage Bankers Association Wednesday.
Mortgage applications surged 10.3 percent in the week ending June 6 from one week earlier, the survey showed.
In corporate news, Boeing shares sank 2.30 percent to end at 134.10 dollars apiece, the biggest laggard among Dow components, as its shares was downgraded to "sector perform" from "outperform" by RBC Capital Markets.
On the previous trading day, U.S. stocks closed little changed, with the broader S&P 500 snapping a four-day record-setting streak while the blue-chip Dow eking out a record close, as investors turned cautious about making more bets on equities after major stock indices repeatedly setting new highs in the past few sessions.
Technical analysts from UBS in a market comment released Wednesday said that more and more evidence showed "the U.S. market is on the way into an important summer top, which should be followed by a significant correction cycle into the second quarter of 2015."