Stocks fell on Wednesday after the top-ranking Federal Reserve official hinted that lower rates may not be in the cards.
The Dow Jones Industrials gave up earlier gains and jettisoned 162.77 points to 26,430.14
The S&P 500 fell back 22.1 points from all-time high levels, finishing at 2,923.72
The NASDAQ Composite index let go of 45.75 to 8,049.64
Fed Chairman Jerome Powell said in a news conference that recently low inflationary pressures may only be “transitory,” dashing speculation the central bank was at least entertaining the idea of a rate cut because of tame inflation.
Apple shares rose 4.9% after its earnings and revenue for the previous quarter beat expectations. The tech giant's guidance for the next quarter was also better than expected. The stock was also on track for its best day since Jan. 30, when it rose 6.8%.
Mondelez also rose 1.6% after posting better-than-expected results.
Overall, the corporate earnings season is turning out better than analysts had expected. Of the companies that have reported so far, 75% have beaten earnings estimates.
Equities also got a boost after ADP and Moody's Analytics said private payrolls increased by 275,000 in April, easily blowing by a Dow Jones estimate of 177,000. The strong gain was led by an increase of 223,000 in payrolls within the services sector.
The report by ADP and Moody's is largely considered to be a preview for the U.S. government monthly jobs report.
The report is the latest piece of economic data to top expectations. Last week, the Commerce Department said the U.S. economy grew at an annualized rate of 3.2% in the first quarter, easily surpassing expectations.
Other data released Wednesday include the Institute for Supply Management manufacturing Purchasing Managers Index for April, which fell to its lowest level since October 2016.
Prices for the benchmark 10-year U.S. Treasury gained slightly, lowering yields to 2.50% from Tuesday's 2.51%. Treasury prices and yields move in opposite directions.
Oil prices slid 34 cents to $63.57 U.S. a barrel.
Gold prices lost $7.90 to $1,277.80 U.S. an ounce.