The Dow Jones Industrial Average dropped 19 points, or 0.08%, to 24,893. The S&P 500 lost 13 factors, or 0.5%, to 2,681. The Nasdaq Composite was down 63 details, or 0.9%, at 7,051.
The stock market has gone through severe swings this week, including a 1,175-point tumble for the Dow on Monday. Stronger wage growth has put a spotlight on the Federal Reserve. The central bank could move to raise interest prices at a faster clip this year to maintain control over inflation-a decline in the value of money due to rising prices. Low interest fees, which encourage consumers and businesses to borrow money, contributed to the stock market’s record-breaking run with the Dow soaring past 26,000 for the first time.
Wall Street’s worries over inflation and interest charges ignited volatility in markets. The CBOE Volatility Index, known as the “fear gauge,” dropped 7.5%. The VIX spiked 115% amid the Dow’s historic plunge Monday.
“We thought 2017 would offer at least one opportunity to take advantage of a 7% or 8% correction, but it never materialized as the market kept grinding higher throughout the year. Now we have an opportunity,” Scott Wren, senior global equity strategist at the Wells Fargo Investment Institute, wrote in a note to clients.
The blue-chip index recovered 568 factors Tuesday, followed be renewed buying earlier Wednesday. The Dow traded in positive territory throughout the session, but it shed about 280 factors heading into the closing bell.
West Texas Intermediate oil settled 2.5% lower at $61.79 per barrel.
The yield on the benchmark 10-year Treasury bond rose 7.2 basis points to roughly 2.84%.
Gold futures slipped nearly 1% to $1,317 per troy ounce.
In corporate news, Walt Disney (DIS) shares fell about 1% after reporting revenue that missed expectations.