S&P 500, Nasdaq close slightly higher after soft services sector data,
Nasdaq closed higher on Wednesday after data showing the U.S. services industry growth slowed further in March, but the advance was limited after Federal Reserve Chair Jerome Powell indicated a cut in interest was still not in sight.
Most of the major S&P 500 sectors advanced, led by gains in energy, materials and communication services .
Powell reaffirmed in a speech on Wednesday that the Fed will stick to its wait-and-see approach as it considers when to start cutting rates given the continued strength of the U.S. economy and recent higher-than-expected inflation data.
Earlier on Wednesday, data from the Institute for Supply Management showed that non-manufacturing PMI declined for the second straight month to 51.4 in March, down from 52.6 in February, and weaker than analysts had expected, according to a Reuters poll.
A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy, and the data still indicates the U.S. economy continues to expand, though at a moderate pace.
«It all has to do with the Fed and market expectations for a rate cut being pushed off. I think that's really what is weighing on the market here and has been for at least a couple of days,» said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
The Dow Jones Industrial Average fell 43.1 points, or 0.11%, to 39,127.14, the S&P 500 gained 5.68 points, or 0.11%, to 5,211.49 and the Nasdaq Composite added 37.01 points, or 0.23%, to 16,277.46.
The U.S. central
