US stock market news: Dow Jones, S&P 500 and Nasdaq close lower after Fed minutes, inflation data

US stock market news: US indices ended lower on Wednesday after minutes from the Federal Reserve's March policy meeting revealed concern among several members of the Federal Open Markets Committee (FOMC) regarding the regional bank liquidity crisis.

The minutes followed a cooler-than-expected inflation report which belied stickier underlying data and cemented the likelihood of another policy rate hike when the Fed convenes next month.

All three major US stock indices seesawed throughout the session to close in negative territory.

The Dow Jones Industrial Average (.DJI) fell 38.29 points or 0.11 per cent to 33,646.5; the S&P 500 (.SPX) lost 16.99 points or 0.41 per cent, at 4,091.95; and the Nasdaq Composite (.IXIC) dropped 102.54 points or 0.85 per cent to 11,929.34.

The indexes started gyrating as market participants parsed the Labor Department's Consumer Price Index (CPI).

That report, on prices urban consumers pay for a basket of goods and services, came in below analysts' expectations, suggesting that the Fed's efforts to tame inflation is taking effect.

However, core CPI - which strips out volatile food and energy items - hit the consensus bull's eye and remains well above the Fed's average annual 2 per cent target rate.

At last glance, financial markets have priced in a 70 per cent likelihood of another 25 basis point interest rate hike at the conclusion of the FOMC's policy meeting next month.

The next market-moving catalyst is likely to be first-quarter earnings season, which kicks off on Friday with results from three big banks - Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N).

Analysts now expect aggregate first-quarter S&P 500 earnings down 5.2% year-on-year, a stark reversal from the 1.4% annual growth seen at the beginning of the quarter.

Among the 11 major sectors of the S&P 500, seven ended in negative territory, with consumer discretionary (.SPLRCD) suffering the largest percentage loss. Industrials (.SPLRCI) led the gainers.

Declining issues outnumbered advancers on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.69-to-1 ratio favored decliners.

The S&P 500 posted 12 new 52-week highs and two new lows; the Nasdaq Composite recorded 64 new highs and 187 new lows.

Volume on U.S. exchanges was 10.40 billion shares, compared with the 11.78 billion average over the last 20 trading days.

With Reuters Inputs