The Dow Jones Industrial Average fell 194.76 points, or 0.56 percent, to 34,395.01. The S&P 500 decreased 3.54 points, or 0.09 percent, to 4,076.57. The Nasdaq Composite Index increased 14.45 points, or 0.13 percent, to 11,482.45.
Seven of the 11 primary S&P 500 sectors ended in red, with financials and consumer staple down 0.71 percent and 0.47 percent, respectively, leading the laggards. Communication services rose 0.29 percent, the best-performing group.
The above market reactions came after data showed the Federal Reserve's preferred gauge of inflation slowed in October.
The U.S. Commerce Department reported Thursday that the U.S. personal consumption expenditures (PCE) price index increased 0.3 percent in October, for a 6 percent year-on-year gain. That's down from the upwardly revised 6.3 percent annual increase reported for September.
The core PCE price index, which excludes food and energy, rose 5 percent over the last 12 months, compared to a 5.2 percent annual increase in September.
Elsewhere, the Institute for Supply Management (ISM) reported that economic activity in the manufacturing sector contracted in November for the first time since May 2020.
The November manufacturing PMI (Purchasing Managers' Index) fell to 49 percent from 50.2 percent recorded in October, showed the report.
The more-closely watched monthly employment report is slated for release on Friday.
On Wednesday, U.S. stocks soared with the Dow up more than 700 points, after Fed Chair Jerome Powell indicated that the pace of tightening would likely slow in December.
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