U.S. stocks closed broadly lower on Wall Street, more than wiping out the gains from a day earlier.

Banks and basic materials companies led the way lower on Wednesday. Citigroup slumped 1.7 per cent and fertilizer maker Mosaic slumped 3.3 per cent.

Trading was light ahead of the New Year's Day holiday.

The Dow Jones industrial average fell 111 points, or 0.6 per cent, to 19,833. The Standard & Poor's 500 index gave up 18 points, or 0.8 per cent, to 2,249. The Nasdaq composite gave up 48 points, or 0.9 per cent, to 5,438.

The losses were broad and accelerated as the day wore on. Two stocks fell for every one that rose on the New York Stock Exchange.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.51 per cent.

On Bay Street, the S&P/TSX composite index rose 32.95 points to close at 15,361.10.

The Canadian dollar slipped against the U.S. dollar. The loonie closed down 0.07 of a cent at 73.81 cents US.

In commodities trading, the February contract for light sweet crude closed at $54.06 US per barrel, up 16 cents from Tuesday.

with files from CBC News