The US trade deficit widened to a record $43.1 billion in January as rising oil prices helped keep imports near historic highs and exports retreated despite the weaker dollar.
Mr Jon Lonski, chief economist at Moody's Investors Service in New York, said the widening trade gap was "consistent with with other signs of an economy that appears to be losing its footing" and therefore could weigh on stock prices.
Mr Pierre Ellis, senior international economist at Decision Economics in New York, said the wider-than-expected trade gap was "a bit discouraging" for investors hoping to see an improvement in the huge current account deficit and would also likely cut economic growth early in 2004.
Imports dipped slightly from the record set in December, but were still the second highest ever at $132.1 billion.
Imports from China posted a 6.6 per cent gain, pushing the monthly trade gap with that country to $11.5 billion.
China has faced pressure from the United States to move to a flexible exchange rate because of complaints that its practice of pegging its currency at 8.28 yuan to dollar gives it an unfair advantage by artificially depressing the price of its exports.