Wall Street slips a day after Dow, S&P set records

NEW YORK, June 4 (Reuters): US stocks dipped in thin volume on Tuesday, with the Dow and the S&P 500 retreating from Monday's record closing levels as traders found few reasons to buy following a string of gains. A rise in semiconductor companies' shares limited losses.

About half of the 10 primary S&P 500 sector indexes were down for the day, led by telecom, which fell 1 per cent.

Monday marked the Dow's second straight record closing high, while it was the third consecutive record close for the S&P 500. However, recent advances were made on light volume, indicating that the rally has lacked conviction.

On Tuesday, the Dow Jones industrial average fell 21.29 points or 0.13 per cent, to end at 16,722.34. The S&P 500 .SPX inched down just 0.73 of a point or 0.04 per cent, to 1,924.24. The Nasdaq Composite dropped 3.12 points or 0.07 per cent, to 4,234.08.

Google Inc shares fell 1.7 per cent to $544.51, weighing on the Nasdaq.

The CBOE Volatility Index rose for a second straight day, up 2.5 per cent, though it remained under 12, well below the historical average of 20. While the level of the VIX indicates a lack of fear in the market, some investors are concerned that it also reflects a sense of complacency.