US stocks opened lower on Tuesday in the face of fresh data showing an improving US trade balance – seen as more evidence that the Federal Reserve’s stimulus could be pulled back in the coming months.

Five minutes into trade, the Dow Jones Industrial Average was down 71.42 points (0.46 per cent) at 15,540.71.

The broad-based S&P 500 fell 3.25 (0.19 per cent) to 1,703.89, while the tech-rich Nasdaq Composite lost 4.33 (0.12 per cent) at 3,688.62.

The Commerce Department’s trade data for June showed a narrowing trade deficit, which analysts said points to a likely upward revision to the growth estimate for the quarter, and firm growth in the current quarter.

With traders focused on whether Fed stimulus continues, that was another sign that a windup of the $US85 billion ($A95.49 billion) a month quantitative easing program would be reeled in soon.