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Stocks drifted to a mixed finish on Wall Street Wednesday, after tentative gains earlier in the day brought the S&P 500 back near record highs.

The benchmark S&P 500 index fell 0.1%, while the tech-heavy Nasdaq and a measure of small-company stocks rose. The Dow Jones Industrial Average slipped, as did Canada’s TSX.

The market is stuck in a holding pattern as nervousness washes out of the market following last week’s jolt by the Federal Reserve, which said it could raise rates by 2023, earlier than previously expected. The yield on the 10-year Treasury note edged up to 1.49%.

In Toronto, the S&P/TSX Composite Index lost 36.26 points, or 0.18%, at 20,164.39. The energy and tech sectors posted modest gains; most other sectors were lower.

In economic news, Canadian retail sales fell by 5.7% in April from March, Statistics Canada said. A flash estimate showed sales were down 3.2% in May. With economies now reopening across Canada, investors mostly shrugged off the data.

Data firm IHS Markit said its flash U.S. manufacturing Purchasing Managers’ Index rose to a reading of 62.6 this month, beating estimates of 61.5, but manufacturers are still struggling to secure raw materials and qualified workers, substantially raising prices.

The “high level of today’s surveys will provide some confirmation for the Fed that the time to begin taking its foot off the accelerator is not far away,” said Jai Malhi, global market strategist at J.P. Morgan Asset Management.

On Tuesday, Fed Chair Jerome Powell reaffirmed the central bank’s intent not to raise interest rates too quickly, based only on the fear of coming inflation.

Powell’s comments follow the Fed’s projection a week ago of an increase in interest rates as soon as 2023. Since then, growth stocks, including major tech names like Tesla and Nvidia, have mostly rallied and outperformed value stocks, like banks and materials companies.

“People are plowing money into what has worked. People are basically momentum-chasing and they’re using the last three years of performance to figure out what to chase,” said Mike Zigmont, head of trading and research at Harvest Volatility Management in New York.

The August crude oil contract was up 23 cents at US$73.08 per barrel and the August natural gas contract was up 7.5 cents at US$3.35 per mmBTU.

The August gold contract was up US$6.00 at US$1,783.40 an ounce and the July copper contract was up 10 cents at US$4.33 a pound.

The Canadian dollar traded for 81.39 cents US compared with 80.93 cents US on Tuesday.

Read more: Stocks that saw action on Wednesday - and why

The Associated Press, The Canadian Press, Reuters, Globe staff