The Dow Jones industrial average fell 113.64 points, or 0.55 percent, to close at 20,523.28, the S&P 500 fell 0.3 percent dropped 6.82 points, or 0.29 percent, to end at 2,342.19 and the Nasdaq pulled back 7.32 points, or 0.12 percent, to close at 5,849.47.
European equities fell broadly after U.K. Prime Minister Theresa May called for a snap election in June. The announcement also sent the British pound for a loop. The currency rose more than 2 percent to $1.284 after briefly falling more than 1 percent.
Naeem Aslam, chief market analyst at Think Markets, said in a note on Wednesday that the rally on the surprise snap election may be premature.
“Traders are getting well ahead of themselves,” he said. “Theresa May could easily win the upcoming election according to the latest polls. However, this doesn’t not mean that Brexit negotiations with the EU partners would become easy,” he added, noting “it is the EU which would be very much calling the shots.”
Aslam also noted that May’s lead could fade before the June 8 voting as the election could be seen as an opportunity for opponents to derail Brexit.
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—By CNBC.Com’s Leslie Shaffer; Follow her on Twitter @LeslieShaffer1
