04:29 PM EDT, 04/02/2024 (MT Newswires) -- US benchmark equity indexes closed lower Tuesday as markets evaluated the latest comments by two Federal Reserve officials.

The Dow Jones Industrial Average and the Nasdaq Composite fell 1% each to 39,170.2 and 16,240.5, respectively, while the S&P 500 lost 0.7% to 5,205.8. Health care and consumer discretionary led sector decliners, while energy paced the gainers.

Cleveland Fed President Loretta Mester said progress on inflation should continue this year but the disinflation process may be choppy. Mester said she needs to see additional monthly personal consumption expenditure prints in order to raise her confidence that inflation will continue its downward trajectory.

Last month, the central bank's Federal Open Market Committee held its benchmark lending rate steady, its fifth straight pause, and maintained expectations for three cuts this year.

San Francisco Fed President Mary Daly said Tuesday that three cuts was likely "a very reasonable baseline." However, she added that three cuts was a projection and "not a promise."

The US 10-year yield rose 2.8 basis points to 4.36%, while the two-year rate fell 2.3 basis points to 4.7%.

In economic news, US job openings came in at about 8.76 million as of the last day of February, up narrowly from January's downwardly revised 8.75 million print, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey. The consensus was for a decline to 8.73 million openings in a survey compiled by Bloomberg.

Job separations, which include quits and layoffs, increased to 5.56 million from 5.45 million month over month.

The latest report is consistent with a labor market that is "still quite healthy, easing any concerns among (Fed) officials about the downside risks to the economy from taking a patient approach toward rate cuts," Oxford Economics said in a note.

West Texas Intermediate crude oil rose 1.7% to $85.11 per barrel Tuesday.

In company news, Humana (HUM), CVS Health ( CVS ) and UnitedHealth Group ( UNH ) shares fell 13%, 7.2% and 6.4%, respectively, among the steepest declines on the S&P 500. The Centers for Medicare and Medicaid Services on Monday said the US government would increase payments to Medicare Advantage plans by 3.7% on average year over year. That wasn't as much as the insurance industry and investors were expecting, CNBC reported.

Tesla (TSLA) was the worst performer on the Nasdaq, down 4.9%, after the electric vehicle maker's Q1 deliveries missed analysts' expectations and decreased both on sequential and annual bases, partially impacted by factory shutdowns.

Phillips 66 (PSX) shares rose 3.8%, the top gainer on the S&P 500. The company said late Monday it reached a "major' milestone in converting its San Francisco refinery into a renewable energy complex.

Gold gained 1.8% to $2,297.10 per troy ounce, while silver jumped 4.3% to $26.16 per ounce.