S&P 500 and Nasdaq gave up early gains to drop on Wednesday as technology stocks reversed course, while investors awaited inflation data and the Federal Reserve’s policy meeting next week. Major technology and growth stocks fell between 0.1% and 3.1%, barring Netlfix (NFLX.O) and Tesla (TSLA.O), which rose 1.1% and 1.8%, respectively. More than half of the S&P sub-sectors declined, led by communication services (.SPLRCL) that lost 1.4%. Inflation data in the U.S. is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated. Pressuring stocks, the two-year U.S. Treasury yield and the benchmark 10-year yield climbed after the Bank of Canada raised interest rates, adding to market apprehension around the Fed’s interest rate decision. Money market participants now see a 69% chance that the U.S. central bank will skip raising interest rate in its June meeting but will hike in July, down from nearly 77% earlier, according to the CME’s Fedwatch tool. U.S. shares have recently been boosted by a rally in megacap stocks and a stronger-than-expected earnings season, with the S&P 500 (.SPX) up almost 20% from its October 2022 lows. The fall on Wednesday is reflective of a lack of confidence in investors over the sustainability of the rally, as it is dependent on a small concentration of major names, said Peter Andersen, founder of Andersen Capital Management. Some analysts say that big tech and other major growth stocks could soon see some profit-taking. Meanwhile, CBOE Volatility Index (.VIX) hit the lowest since February 14, 2020. Wells Fargo raised the price target on Netflix shares to $500 from $400 per share, the highest on Wall Street, according to Refinitiv. Energy index (.SPNY) rose 2.5% after oil prices edged higher, while the KBW Regional Banking Index (.KRX) hit a 2-month high. NN: For the record this stock market is doomed.