The broad S&P 500 index fell by 13.03 points (0.22%), while the Nasdaq Composite dropped 98.86 points (0.51%). In contrast, the Dow Jones Industrial Average gained 35.16 points (0.08%).

The market volatility followed remarks from a Federal Reserve official suggesting that inflation is moderate enough for the central bank to consider cutting interest rates in its upcoming meeting—a more optimistic outlook than Fed Chair Jerome Powell had expressed earlier on Wednesday, according to CNBC.