Dow slips 174 points as Fed says inflation approaching target

Stocks fell Wednesday after the Federal Reserve said at the conclusion of its two-day meeting that inflation was approaching its target, adding to concern that the central bank will put the brakes on economic growth.

The Dow Jones Industrial Average slipped 174.07 points, or 0.72%, to 23,924.98. The S&P 500 lost 19.14 points to 2,635.66. The Nasdaq Composite was down 29.81 points, or 0.42%, at 7,100.90.

As expected, the Fed held the target lending rate at 1.5% to 1.75%, despite recent data showing that the central bank's preferred inflation gauge neared its 2% target. Core prices, which exclude energy and food, grew 1.9% through March. Although inflation gained steam, the Fed didn't indicate it will accelerate rate hikes this year in response.

Shares of Snap plummeted as concern over a recent redesign grew as the company fell short of Wall Street expectations.

Apple rallied a day after the tech giant topped earnings expectations and announced a $100 billion boost to its share buyback program. The rally came even as iPhone sales fell slightly short of Wall Street’s expectations.

Economic data published Wednesday morning included the ADP jobs report, which showed that U.S. companies added 204,000 jobs in April, just above analysts’ expectations for 200,000. The report is a prelude to Friday’s official nonfarm payrolls report. Current expectations are for an increase of 195,000 positions.

Oil futures settled 68 cents higher, or 1%, at $67.93 a barrel after the commodity rallied to a multiyear high. The U.S. Energy Information Administration said crude supplies rose 6.2 million barrels for the week ended April 27, well above the 1.8 million barrel increase analysts surveyed by S&P Global Platts had expected.