02:32 PM EDT, 05/16/2024 (MT Newswires) -- US benchmark equity indexes were lower after midday Thursday following record closings in the previous session, as markets evaluated remarks by a Federal Reserve official and the latest macro data.

The Nasdaq Composite was down 0.2% at 16,717.9 intraday, while the Dow Jones Industrial Average and S&P 500 fell 0.1% each to 39,890.1 and 5,303.4, respectively. Among sectors, materials paced the decliners, while consumer staples led the gainers.

Cleveland Fed President Loretta Mester said it's likely "prudent at this point" for policymakers to hold the restrictive monetary policy stance for longer as they seek clarity about the inflation path.

"Moving rates down too soon or too quickly without sufficient evidence to give us confidence that inflation is on a sustainable and timely path back to 2% would risk undoing the progress we have made on inflation," Mester said. "And with labor markets and economic growth both being very solid, we do not need to take that risk."

The US two-year yield rose 4.9 basis points to 4.79% intraday, while the 10-year rate added 1.5 basis points to 4.37%.

In economic news, US housing starts rebounded last month as multi-family building projects grew by double-digits, government data showed.

"Overall, multi-family starts remain subdued amid a healthy supply pipeline, with permitting activity suggesting this is likely to continue moving forward," TD said in a note.

US industrial production was unchanged in April, below expectations for a 0.1% increase in a survey compiled by Bloomberg and following a downwardly revised 0.1% gain the previous month.

Weekly applications for unemployment insurance in the US decreased less than Wall Street's expectations, while the four-week moving average rose, government data showed.

West Texas Intermediate crude oil rose 0.8% to $79.29 per barrel intraday.

In company news, Deere (DE) saw the second-steepest decline on the S&P 500, down 4.1%, after the agriculture and construction equipment manufacturer cut its full-year profit outlook as lower shipment volumes dragged down its fiscal second-quarter results year-on-year.

Walmart ( WMT ) logged better-than-expected fiscal first-quarter results buoyed by gains across all operating segments, prompting the retail giant to raise its full-year guidance. The company's shares were up 7%, the best performer on the S&P 500 and the Dow.

Gold was down 0.4% at $2,386.10 per tory ounce, while silver rose 0.6% to $29.91 per ounce.