"A combination of firm growth and higher interest rates is unnerving", said Anthony Chan, chief economist for Chase in NY. The blue-chip Dow Jones grew by 68.24 points, with UnitedHealth and Walmart being the best-performing stocks in the index. The S&P 500 closed at 2,711.45 for a loss of -18.68 points or -0.68%. Vaneck Vectors Semiconductor's stock rose 1.7% after the news. The Nasdaq Composite closed at 7,351.63 for a loss of -59.69 points or -0.81%. Smaller rival Lowe's Companies Inc was down 1.0%.
Bond prices fell. The yield on the 10-year Treasury rose to 2.99 percent.
The chip maker stocks also posted a price jump on Monday after a report suggesting that Chinese regulators will re-examine the proposed acquisition of Qualcomm's NXP Semiconductors.More news: Palestinians bury dozens slain in clashes at Israel-Gaza border
Tuesday ended an eight-day run of consecutive gains for the Dow Jones.
Markets focused early on economic reports with sales at USA retailers rising for a second straight month in April.
In Asia, shares declined on Wednesday in morning session after North Korea pulled out of high-level talks with Seoul and as US Treasury yields rose to the highest level in seven years overnight.More news: Says Kwadwo Asamoah: Mohammed Salah is not at Ronaldo, Messi level
The S&P 500 rose 9 points, or 0.3 percent, to 2,736.
Stocks are opening moderately lower across the board on Wall Street, led by declines in technology and consumer-focused companies.
Stocks are broadly higher at midday on Wall Street as investors hope that trade tensions will ease between the USA and China. The Dow Jones Industrial Average lost 193.07 points, or 0.8%, to 24,706.34, putting an end to a 8-day rally, the longest since last September.More news: Coveney: Ireland's 'Outrage' Amid Palestinian Killings
The benchmark 10-year note's yield climbed to 3.09% in afternoon trading, and it is up more than 67.1 basis points in 2018, according to data from bond platform Tradeweb. That yield is used to set interest rates on mortgages and other kinds of loans. The Nasdaq composite fell 75 points, or 1 percent, to 7,335.