Technology stock declines resulted in a mixed performance on Wall Street on Wednesday, dampening the momentum of its five-week rally.

The S&P 500 declined by 0.5% or 23.02 points, closing at 4,365.69. This marked the third consecutive pullback for the index after reaching its highest level in over a year during the previous week.

The Nasdaq composite was particularly affected by the weakness in high-growth stocks, experiencing a loss of 1.2% or 165.09 points, closing at 13,502.20, the Associated Press reports.

However, despite the downturn, an almost equal number of stocks rose and fell on Wall Street. The Dow Jones Industrial Average experienced a milder decline of 0.3% or 102.35 points, closing at 33,951.52.

Wall Street has seen significant gains this year, with the S&P 500 rising nearly 14%.

This was driven by hopes of a rapid decline in inflation, which could lead the Federal Reserve to halt interest rate hikes.

Such a move would relieve pressure on the economy and potentially prevent a recession. However, some analysts argue that the market rally progressed too quickly while inflation remained persistently high.

This situation may require the Fed to maintain higher interest rates for an extended period.

Written by staff