01:16 PM EST, 01/08/2025 (MT Newswires) -- US equity indexes fell in choppy midday trading Wednesday as investors weighed an unexpected drop in jobless claims with Federal Reserve Governor Christopher Waller's view that inflation remains on an easing trajectory.

The S&P 500 fell 0.1% to 5,906.2, with the Nasdaq Composite down 0.1% to 19,463.3 and the Dow Jones Industrial Average 0.1% lower at 42,497.7. All three indexes moved between gains and losses earlier in the session. Communication services and utilities led the decliners intraday, while healthcare was the sole gainer.

US initial jobless claims unexpectedly fell to 201,000 in the week ended Jan. 4, the lowest level since February and compared with expectations for an increase to 215,000 in a survey compiled by Bloomberg. The previous week's level was 211,000.

Federal Reserve Governor Christopher Waller said Wednesday he expects inflation to ease further in the months ahead and that it's appropriate to continue cutting interest rates. The latest reading of core personal consumption expenditures, or PCE, is 2.8% for the 12 months ending in November, Waller told a conference organized by the Organization for Economic Cooperation and Development. "This is down just a bit from where it was a year earlier, at 3.2%."

"This minimal further progress has led to calls to slow or stop reducing the policy rate," Waller added. "However, inflation will continue to make progress toward our 2% goal over the medium term and that further [interest-rate] reductions will be appropriate."

Further, in economic news, ADP's monthly measure of private payrolls showed a 122,000 increase in December, below the forecasts for a 139,000 increase in a poll compiled by Bloomberg and the 146,000 reported in November.

US Treasury yields traded mixed intraday. The 10-year was steady at 4.68%, its highest on an intraday basis since late April, as per data compiled by CNBC. The 10-year touched an intraday high of 4.73%. The two-year yield fell 1.4 basis points to 4.28%.

In company news, Meta Platforms ( META ) said Wednesday that it will roll out a test in the US, France, and Germany for buyers to browse eBay ( EBAY ) listings on Facebook Marketplace and then complete the transactions on eBay ( EBAY ). Shares of eBay ( EBAY ) rose 9.6% intraday, the top performer on the S&P 500.

Deutsche Bank downgraded Palo Alto Networks ( PANW ) to hold from buy while adjusting its price target to $190 from $207. BTIG also lowered the company's shares to neutral from buy. Palo Alto's shares traded 3.2% lower intraday, among the worst performers on the Nasdaq.

West Texas Intermediate crude oil futures dropped 1.2% to $73.36 a barrel.

US commercial crude oil stocks, excluding inventories in the Strategic Petroleum Reserve, fell by 1 million barrels in the week ended Jan. 3, following a 1.2-million-barrel decline in the previous week. The drop compared with the 2 million barrel dive expected in a survey compiled by Bloomberg.

Gold futures rose 0.2% to $2,671.01 an ounce, while their silver counterpart fell 0.2% to $30.64 per ounce.