Investing.com – U.S. stocks closed mostly lower on Wednesday, despite the release of positive economic data and an increase in expectations among investors for a June rate hike.
The Federal Reserve decided to leave its benchmark rate unchanged on Wednesday at 0.75% to 1% but noted that growth in economic activity had slowed in the first quarter while household spending rose "only modestly".
U.S. equities moved into positive territory but pared gains later during the session, as optimism for a June rate ticked higher.
According to investing.com’s Fed rate monitor tool, nearly 70% of traders expect the Federal Reserve to hike interest rates in June, compared to about only 60% prior to the interest rate decision.
Meanwhile, on the economic data front, investors welcomed better than expected jobs and services sector growth data.
The Institute for Supply Management said its non-manufacturing purchasing managers’ index rose to 57.5 in April from 55.2 in March. The reading was above economists’ forecasts of 55.8.
A report from ADP and Moody's Analytics showed U.S. companies created 177,000 new positions for the month, slightly above expectations of 175,000.
In corporate earnings news, both Time Warner and yum brands posted better than expected earnings.
After the closing bell investors look ahead to earnings from Fitbit, Kraft Heinz and Tesla.
The Dow Jones Industrial Average flat at 20,957.12. The S&P 500 closed flat and the Nasdaq Composite closed lower at 6072.55, down 0.58%.
The ‘Bulls and Bears’ on Wall Street
The top Dow gainers included; Merck & Company Inc (NYSE:MRK) up 1.5%, and Chevron Corporation (NYSE:CVX) up 1.3%, while McDonald’s Corporation (NYSE:MCD) added 1%.
Walt Disney Company (NYSE:DIS) down 1%, E I du Pont de Nemours & Co (NYSE:DD) down 1.2% and Nike Inc (NYSE:NKE) down 1%, were among the worst Dow performers of the session.