Shares of Exxon and Chevron fell by more than 1.5 percent and were among the biggest drags on the Dow and S&P. The S&P energy index lost 2 percent and was the worst performing out of the 11 major S&P sectors.

The Dow Minute by Minute

Position of the Dow Jones industrial average at 1-minute intervals on Wednesday.

Recent tepid economic data and an inflation rate below the Federal Reserve’s 2 percent target may have a bearing on the U.S. central bank’s plans for interest rate hikes.

New orders for U.S.-made goods fell more than expected in May, data showed on Wednesday, but capital equipment orders were slightly stronger than previously reported, suggesting manufacturing remains on a path of moderate growth.

Fed policymakers were increasingly split on the outlook for inflation and how it will affect the future pace of rate increases, according to minutes of the Fed’s latest policy meeting on June 13-14.

The minutes revealed a few officials viewed equity prices as high when compared to standard valuation measures, even though earnings growth had been robust.

The Dow Jones Industrial Average fell 1.1 points, or 0.01 percent, to close at 21,478.17, the S&P 500 gained 3.53 points, or 0.15 percent, to 2,432.54 and the Nasdaq Composite added 40.80 points, or 0.67 percent, to 6,150.86.

The tech sector’s 1 percent rise led the S&P 500 gainers, with Advanced Micro Devices, Micron and Nvidia among the best performers in the sector. The PHLX semiconductor index jumped 2.1 percent.

Technology shares have been volatile in recent weeks as the sector’s strong run this year raised concerns about their valuation.

The tech sector index is up nearly 17 percent this year.

O’Reilly Automotive plunged 18.9 percent to a near three-year low after its second-quarter same-store sales widely missed its own estimates.

That move dragged down other auto-parts retailers, with Autozone down 9.6 percent and Advance Auto Parts down 11.15 percent.

Declining issues outnumbered advancing ones on the NYSE by a 1.60-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio favored decliners.

About 6.52 billion shares changed hands in U.S. exchanges, below the 7.19 billion daily average over the last 20 sessions.

(Reporting by Chuck Mikolajczak; Editing by James Dalgleish)

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