Dow Ends Volatile Session Lower

Wall Street stocks ended mostly lower Wednesday after Federal Reserve Chair Jerome Powell signalled an interest rate hike is likely in March amid elevated inflation.

Stocks were solidly positive heading into Powell's news conference at the conclusion of the central bank's two-day policy meeting, but then stumbled with the Dow Jones Industrial Average dropping 0.4 percent to 34,168.

The broad-based S&P fell 0.2 percent to end at 4,350, while the tech-rich Nasdaq Composite Index closed essentially flat at 13,542.

Powell told reporters the recovery in the world's largest economy is strong enough that it can handle higher borrowing costs.

"There's room to raise interest rates without threatening the labour market," he said, noting the central bank also plans to soon begin to work on reducing its massive bond holdings.

FHN Financial Chief Economist Chris Low described the news conference as "hawkish" in tone, adding that "while there is nothing explicit suggesting the Fed will tighten faster than communicated previously...there are plenty of hints in that direction".

US stocks have suffered bruising losses thus far in January due in large part to unease sparked by the Fed's sharp pivot away from accommodation toward monetary tightening as prices have surged, in part due to global supply snarls.

Among individual companies, Microsoft jumped 2.9 percent after it released better-than-expected results on robust demand for digital software.

But Boeing shed 4.8 percent as it reported a hefty fourth-quarter loss, as mounting costs connected to woes besetting the widebody 787, more than offset a boost from the comeback of the 737 MAX after a lengthy grounding.

Mattel gained 4.3 percent after it announced a new licensing agreement with Disney to make dolls and toys connected to the "Princess" and "Frozen" franchises, winning back a contract it had lost to rival Hasbro, which fell 6.1 percent. (AFP)