U.S. stocks lost earlier gains in afternoon trade on a weaker dollar and crude oil prices topped $110 a barrel, leading investors to safeguard profits from Tuesday's rally.

After rising more than 150 points earlier, the Dow Jones Industrial Average was up 9.9 points to 12,166.66 at 3:25 pm in New York. The S&P fell 3.21 or 0.24 percent to 1,317.44 while the Nasdaq gained 8.51 points or 0.38 percent to 2,264.27.

On Tuesday, the Dow rallied 416 points, or 3.6 percent, its largest percentage climb since March 2003 and its fourth biggest point jump.

Crude-oil prices resumed their course higher, topping $110 for the first time, as the dollar remained under pressure. An Energy Department report reported an unexpected increase in crude oil supplies from last week which helped calm investors.

Volume on the New York Stock Exchange reached 101 million shares and it nearly reached 534 million on the Nasdaq. There were roughly three advancing stocks for every declining ones in both markets.

The dollar dropped on concern that the Federal Reserve's plan to loan banks $200 billion in exchange for debt, that includes mortgage-backed securities, would not succeed in easing the credit crunch.