Investing.com - Profit taking sent U.S. stocks closing mixed to lower on Wednesday after investors locked in gains stemming from Federal Reserve Chair Janet Yellen's Tuesday reassurance that policy will remain accommodative and sold for profits.
At the close of U.S. trading, the Dow Jones Industrial Average fell 0.19%, the S&P 500 index fell 0.03%, while the Nasdaq Composite index rose 0.24%.
Speaking before the House Financial Services Committee on Tuesday, Fed Chair Yellen suggested that the central bank would taper the pace of its asset purchases if the recovery continues, though softness in the labor market will likely result in a very gradual dismantling of bond purchases.
The Fed is currently purchasing USD65 billion in Treasury holdings and mortgage debt a month to suppress interest rates to spur recovery, which sends stocks rising to encourage investment and hiring.
Yellen stressed that the pace of the central bank’s bond purchases are not on a “preset course” and reiterated that the Fed plans to hold interest rates near zero “well past” the time the jobless rate falls below 6.5%.
Yellen's words also fueled sentiments tightening remains far off on the horizon.
Stocks rallied on Tuesday but by Wednesday, investors sold for profits.
Also on Wednesday, consumer products giant Procter & Gamble cut its sales and profit forecasts for 2014, which spooked investors somewhat and bruised the Dow Jones Industrial Average.
Leading Dow Jones Industrial Average performers included Caterpillar, up 1.27%, Microsoft, up 0.79%, and Home Depot, up 0.75%.
The Dow Jones Industrial Average's worst performers included Procter & Gamble, down 1.73%, Boeing, down 1.57%, and Chevron, down 1.36%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.50%, France's CAC 40 rose 0.52%, while Germany's DAX 30 rose 0.65%. Meanwhile, in the U.K. the FTSE 100 finished rose 0.04%.
On Thursday, Federal Reserve Chair Janet Yellen is to testify on the bank’s semiannual monetary policy report before the House Financial Services Committee, in Washington.