The S&P 500 and Nasdaq ended slightly higher on Wednesday after data showing the US services industry growth slowed further in March, while comments by Federal Reserve Chair Jerome Powell that focused on the need for more debate and data before interest rates are cut limited the advance.

Powell reaffirmed in a speech on Wednesday that the Fed will stick to its wait-and-see approach as it considers when to start cutting rates given the continued strength of the US economy and recent higher-than-expected inflation data.

The S&P 500 gained 0.1 percent to end at 5,21, the Nasdaq Composite gained 0.2 percent to 16,277, and the Dow Jones Industrial Average fell 0.1 percent to 39,127.

Earlier on Wednesday, data from the Institute for Supply Management showed that non-manufacturing PMI declined for the second straight month to 51.4 in March, down from 52.6 in February, and weaker than analysts had expected, according to a Reuters poll.

A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy, and the data still indicates the US economy continues to expand, though at a moderate pace.

"It all has to do with the Fed and market expectations for a rate cut being pushed off. I think that's really what is weighing on the market here and has been for at least a couple of days," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

Traders were pricing in a 57 percent chance the Fed will cut interest rates by 25 basis points in June, according to CMEGroup's FedWatch tool, down from about 64 percent a week ago.

In separate comments to CNBC on Wednesday, Atlanta Fed President Raphael Bostic said rates should likely not be reduced until the fourth quarter of this year.

"There's this kind of yin and yang data scenario where you have some strong data that has some good-news-is-bad-news feel to it, meaning that what's good news for the economy is bad news for potential policy path," said James St. Aubin, chief investment officer at Sierra Investment Management in California.

Intel shares dropped after the chipmaker disclosed US$7 billion in operating losses for its foundry business in 2023, steeper than the US$5.2 billion reported the year before. (Reuters)