[NEW YORK] Wall Street stocks finished little changed on Tuesday as renewed concerns about higher interest rates offset strong manufacturing data and a rally in petroleum-linked shares.

Stocks opened solidly higher on the first trading day after the holiday weekend, but the momentum faded as the yield on the 10-year US Treasury note jumped, amplifying worries over an inflation spike that potentially could lead to a shift in monetary policy.

An index of US manufacturing activity rose further in May, although factories struggled with snarled supply chains and finding workers, according to a survey by the Institute for Supply Management.

"Demand is strong, but what good is that if you cannot get the materials needed to produce your finished goods?" a nonmetallic mineral products company told the survey.

The Dow Jones Industrial Average finished up 0.1 per cent at 34,575.31.

The broad-based S&P 500 slipped 0.1 per cent to close at 4,202.04, while the tech-rich Nasdaq Composite Index also lost 0.1 per cent at 13,736.48.

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Markets have become leery that the economic reopening will cause a price spiral, but Peter Cardillo of Spartan Capital noted that inflation would "not necessarily be detrimental to the equity market."

He predicted that "this is the beginning of a summer rally."

Petroleum-linked shares were big winners, with Apache surging more than 10 per cent, Chevron winning 2.7 per cent and Halliburton rising 4.1 per cent.

The sector is seen as a big beneficiary of a reopening economy and rising demand for petrol and other petroleum products.

Banking giants JPMorgan Chase, Citigroup and Bank of America all piled on more than one per cent on expectations for higher interest rates.

AMC Entertainment had another banner day, soaring 22.1 per cent, with improving ticket sales over the Memorial Day weekend adding to support from retail investors who have organised behind the company on social media.

AFP