WASHINGTON (dpa-AFX) - Stocks moved mostly higher in early trading on Wednesday but gave back ground over the course of the session. The major averages pulled back well off their highs as the day progressed, with the Dow and S&P 500 pulling back into negative territory.
The Dow and the S&P 500 ended the session at their worst levels of the day. The Dow slid 443.87 points or 0.9 percent to 50,906.05 and the S&P 500 fell 19.30 points or 0.3 percent to 7,651.54.
Meanwhile, the tech-heavy Nasdaq pulled back well off its best levels of the day but still closed up 63.52 points or 0.2 percent at 26,861.06.
The early strength on Wall Street reflected a positive reaction to a closely watched report on consumer price inflation in the U.S.
The report from the Commerce Department showed consumer prices rose by less than expected on a monthly basis in August, while the annual rate of price growth also came in below estimates.
While the annual rate of consumer price growth remains well above the Federal Reserve's 2 percent target, traders may have felt the data reduced the likelihood the central bank will raise interest rates next month.
According to CME Group's FedWatch Tool, the chances the Fed will raise rates by a quarter point have fallen to 34.9 percent from 50.9 percent on Tuesday.
Buying interest waned over the course of the session, however, as some analysts suggested the inflation data is not likely to persuade the Fed to leave rates unchanged in light of signs of continued strength in the labor market.
A report released by payroll processor ADP this morning showed private sector employment in the U.S. jumped by more than expected in the month of September.
ADP said private sector employment shot up by 90,000 jobs in September after rising by a downwardly revised 36,000 jobs in August.
Economists had expected private sector employment to increase by 70,000 jobs compared to the addition of 38,000 jobs originally reported for the previous month.
Sector News
Airline stocks showed a significant move to the downside amid a jump in crude oil prices, with the NYSE Arca Airline Index falling by 1.6 percent.
Considerable weakness also emerged among pharmaceutical stocks, as reflected by the 1.6 percent loss posted by the NYSE Arca Pharmaceutical Index.
Housing, gold and commercial real estate stocks also showed notable moves to the downside, while some strength remained visible among software stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.9 percent, while China's Shanghai Composite Index rose by 0.3 percent.
Meanwhile, the major European markets moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.3 percent, the German DAX Index slid by 0.8 percent and the French CAC 40 Index slumped by 0.9 percent.
In the bond market, treasuries once again moved lower over the course of the session after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4 basis points to 5.29 percent.
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