05:11 PM EDT, 08/20/2025 (MT Newswires) -- US equities closed mostly lower on Wednesday as traders digested minutes of the Federal Reserve's July policy meeting.

The Nasdaq Composite was 0.7% lower at 21,172.9, falling for a second consecutive session. The S&P 500 fell 0.2% to 6,395.8, stretching its pullback to a fourth straight day from record highs. The Dow Jones Industrial Average finished just above the flat line at 44,938.3.

Most sectors ended in the green, led by energy, while consumer discretionary saw the biggest drop.

A majority of Fed officials saw potential inflation pressures outweighing risks to the labor market, while policymakers indicated that it would take time to gain more clarity on the exact impact of tariffs on prices, minutes of the central bank's July 29-30 meeting showed Wednesday.

"Participants generally pointed to risks to both sides of the committee's dual mandate, emphasizing upside risk to inflation and downside risk to employment," the meeting minutes showed. "A majority of participants judged the upside risk to inflation as the greater of these two risks, while several participants viewed the two risks as roughly balanced, and a couple of participants considered downside risk to employment the more salient risk."

Fed Chair Jerome Powell is scheduled to speak in Jackson Hole, Wyoming, on Friday.

He is expected to "unveil the Fed's new policy framework," Stifel said on Wednesday. "Market participants and Fed watchers alike will be listening closely to (Powell's) comments and any indications of support for a September rate cut."

Markets are pricing in a roughly 81% probability that the Federal Open Market Committee will reduce interest rates by 25 basis points next month, down from about 87% on Tuesday, with the remaining odds in favor of another pause, according to the CME FedWatch tool.

US Treasury yields were lower, with the 10-year rate dropping 1.5 basis points to 4.29% and the two-year rate down 0.5 basis point to 3.75%.

In company news, Intel ( INTC ) fell 7%, the steepest decline on the S&P 500, erasing a similar gain in the previous session.

Intel's ( INTC ) share price could go as high as around $40 in a valuation upside scenario, UBS Securities said in a note amid chatter around the Trump administration eyeing an equity stake in the chipmaker.

The White House is considering converting US Chips and Science Act grants into a 10% equity stake in Intel ( INTC ), Bloomberg News reported earlier this week. The company is in talks with other investors over an equity infusion, CNBC reported Wednesday, citing sources.

Target ( TGT ) affirmed its full-year outlook as the retailer maintained a cautious approach amid tariff-related headwinds, while announcing a new chief executive. Chief Operating Officer Michael Fiddelke will succeed Brian Cornell as CEO, starting Feb. 1. The company's shares were down 6.3%, the second-steepest decline on the S&P 500.

Estee Lauder ( EL ) shares dropped 3.7% after the cosmetics company guided earnings for the current fiscal year below Wall Street's estimates and warned of a $100 million hit from tariffs. The company's results for the just-ended quarter fell year over year.

TJX (TJX) raised its full-year earnings outlook as the discount retailer reiterated confidence in its ability to offset tariffs-related headwinds amid strong demand that drove annual gains in fiscal second-quarter results. Its shares were up 2.7%, among the top S&P 500 gainers.

Lowe's (LOW) agreed to acquire interior building products distributor Foundation Building Materials in a deal worth around $8.8 billion. The home-improvement retailer lifted its full-year sales outlook on the back of better-than-expected fiscal second-quarter results. Shares of Lowe's were up 0.3%.

West Texas Intermediate crude oil was up 1.3% at $63.14 a barrel in Wednesday late-afternoon trade.

"Oil prices rose after industry data showed a decline in US crude inventories, while uncertainty prevailed over Ukraine talks," D.A. Davidson said in a client note.

In economic news, mortgage applications in the US fell last week as the 30-year fixed rate on conforming loans ticked higher, the Mortgage Bankers Association said.

Gold was up about 1% at $3,390.80 per troy ounce, while silver rose 1.4% to $37.87 per ounce.