The Dow Jones Industrial Average finished slightly lower Wednesday as the market fought to overcome Tuesday's selloff, spurred by comments from Federal Reserve Chairman Jerome Powell hinting at higher interest rates for longer.
The Dow dipped 58.06 points, or 0.18%, to end at 32,798.40, while the S&P 500 edged 0.14% higher to settle at 3,992.01. The Nasdaq Composite rose 0.4% to finish at 11,576.00.
Fresh job market data fueled investor concern that bigger rate increases may be ahead. Data showed that job openings fell less than expected in January, while a stronger-than-expected February private payrolls report affirmed that the economy is standing strong despite the central bank's hiking. The findings precede Friday's February jobs data after January's blockbuster number.
Stocks were coming off a down session after comments from Powell's Senate testimony cautioned lawmakers that the central bank's terminal rate will likely be higher than previously anticipated due to stubbornly high economic data. Commentary continued on Wednesday as Powell spoke before the House Financial Services Committee.
"It just raises the idea that they may have to do more," said Kathy Bostjancic, chief economist at Nationwide. "The fact that they're even willing to go rev it up, it introduces the idea even more so that they make a policy mistake — that this results in a hard landing for the economy."
While Powell emphasized during his testimonies that no decision has been made about the March meeting, traders are betting on a bigger-than-expected hike. More than 75% are calling for a 50 basis point increase, according to CME Group's FedWatch tool.