05:02 PM EDT, 07/17/2024 (MT Newswires) -- The Dow Jones Industrial Average closed at an all-time high Wednesday as markets analyzed comments by Federal Reserve Governor Christopher Waller and the latest batch of corporate earnings.

The Dow rose 0.6% to 41,198.1. The Nasdaq Composite tumbled 2.8% to 17,996.9, while the S&P 500 fell 1.4% to 5,588.3. Technology saw the steepest decline among sectors, down 3.7%, while consumer staples led the gainers.

Waller said the central bank's Federal Open Market Committee is "getting closer" to lowering its benchmark lending rate amid growing signs that inflation is easing, though the job is not done yet.

"The data over the past couple months shows the economy growing at a more moderate pace, labor supply and demand apparently in balance, and inflation slowing from earlier this year," Waller said. "While I don't believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted."

On Monday, Fed Chair Jerome Powell reportedly said policymakers won't wait for inflation to fall to 2% before reducing interest rates.

The US 10-year yield fell one basis point to 4.16% Wednesday, while the two-year rate was little changed at 4.44%.

In company news, Johnson & Johnson ( JNJ ) shares rose 3.7%, the second-top gainer on the Dow, after the healthcare products conglomerate's second-quarter results topped estimates. The company lowered its full-year earnings outlook to reflect the impact of recent acquisitions.

Elevance Health ( ELV ) logged better-than-expected second-quarter results despite a double-digit decline in memberships for Medicaid plans, while Chief Executive Gail Boudreaux said the health insurer maintained its full-year earnings outlook. The company's shares fell 5.8%.

Semiconductor stocks slumped after Bloomberg News reported that President Joe Biden is mulling severe trade curbs if chipmakers keep giving China access to advanced semiconductor technology.

Nvidia ( NVDA ) shares slid 6.6%, while ASML ( ASML ) tumbled nearly 13%, the steepest decline on the Nasdaq. Advanced Micro Devices ( AMD ) shed 10%, among the worst performers on the Nasdaq and the S&P 500, along with Applied Materials ( AMAT ) .

West Texas Intermediate crude oil rose 2.7% to $82.95 a barrel. Commercial crude stockpiles in the US posted a larger draw than predicted last week, the Energy Information Administration reported.

In economic news, economic activity in a majority of districts rose at a "slight to modest" pace since May, while overall growth in the next six months was expected to be slower amid uncertainty around inflation and the upcoming presidential election, the Fed said in its latest Beige Book released Wednesday.

US housing starts unexpectedly climbed last month off May's upwardly revised level as multi-family building projects gained steam, according to government data.

US industrial production increased more than expected last month as manufacturing output decelerated less than the market predicted, Fed data showed.

Mortgage applications in the US rebounded following two consecutive weeks of declines as refinance activity rose to its highest level since August 2022 amid falling interest rates, the Mortgage Bankers Association said.

Gold fell 0.3% to $2,461.60 per troy ounce, while silver declined 3% to $30.51 per ounce.