WASHINGTON (dpa-AFX) - The major U.S. averages ended lower on Wednesday amid fading hopes about peace talks between Russia and Ukraine after the former continued to shell certain areas of Ukraine despite having promised to scale down military operations on Tuesday.
Rising worries about inflation and imminent aggressive monetary tightening by the Federal Reserve weighed as well on sentiment.
Profit taking after three successive days of gains pushed the Dow to a weak close. The Nasdaq, which scored strong gains in the previous two sessions, ended with a more pronounced loss, as chip stocks fell sharply.
The Dow ended with a loss of 65.38 points or 0.19 percent at 35,228.81, recovering well from a low of 35,058.58 it touched in the final hour. The S&P 500 drifted down 29.15 points or 0.63 to close at 4,603.45, while the Nasdaq ended down by 177.36 points or 1.21 percent at 14,442.27.
A report released by payroll processor ADP showed private sector employment in the U.S. jumped by 455,000 jobs in March after surging by an upwardly revised 486,000 jobs in February.
Economists had expected private sector employment to climb by 450,000 jobs compared to the addition of 475,000 jobs originally reported for the previous month.
Data released by the Commerce Department showed the U.S. economy grew by slightly less than previously estimated in the fourth quarter of 2021.
The Commerce Department said real gross domestic product increased by 6.9% in the fourth quarter, reflecting a modest downward revision from the previously estimated 7% spike. Economists had expected GDP growth to be unrevised.
Home Depot shares declined nearly 3 percent. Salesforce.com shares also ended lower by nearly 3 percent. Visa, Intel, Goldman Sachs and Walt Disney declined 1 to 2 percent.
Walmart and United Health Group gained 1.8 percent and 2.1%, respectively. Travelers Companies, Johnson & Johnson, Merck and Caterpillar also ended notably higher.
Lululemon Athletica Inc shares gained nearly 10 percent after the company forecast full-year profit and revenue above estimates, as demand for athletic wear remains strong.
In overseas trading, Asian stocks ended higher on Wednesday amid optimism around a peaceful resolution of the Ukraine war after Russia promised to scale down military operations around Ukraine's capital Kyiv, while Ukraine proposed adopting a neutral status in face-to-face negotiations.
European stocks closed weak amid doubts about Russia's promise to scale down military operations. Ukraine is skeptical about Russia's promise, and the U.S. has warned the threat is not over and that Russia's announcement could be an attempt to buy time to continue its assault.
In commodities, West Texas Intermediate Crude oil futures for May ended higher by $3.58 or about 3.4% at $107.82 a barrel amid fading hopes about Russia-Ukraine peace talks, and data showing a drop in U.S. crude inventories.
Gold futures snapped a three-session losing streak and moved higher, as the commodity attracted safe-haven buying amid skepticism over Russia's promise to scale down military operations in Ukraine. Gold futures for June ended higher by $21.00 or about 1.1% at $1,939.00 an ounce.
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