Wall Street shifted lower in early trading Wednesday as markets took in more corporate earnings reports while considering the impact of tariffs being imposed by the United States and China.

Stocks are set for their third straight day of declines as the potential for a global trade war continues to simmer.

U.S. stock futures and the dollar fell on Tuesday, while Hong Kong shares slipped from two-month highs, as the U.S. and China went tit-for-tat on tariffs and raised the spectre of a broader, damaging trade conflict.

Indian benchmark indices The Sensex and Nifty surged in the second half of Tuesday, closing nearly 2 per cent higher after the US paused its planned tariffs on Canada and Mexico, providing temporary relief from escalating trade tensions.