Wall Street’s main indices dropped on Wednesday as investors anticipated key inflation data and analyzed statements from U.S. Federal Reserve officials.

Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) were down between 1.3% and 4.6%.

“Aadil Zaman, a partner at Wall Street Alliance Group, mentioned, ‘Currently, we observe a period of profit-taking and short-term retrenchment in the cards.'”

“Philadelphia Fed President Patrick Harker stated on Tuesday that the U.S. central bank could maintain unchanged interest rates, unless there’s a sudden shift in recent economic data trends.”

However, on Monday, Fed Governor Michelle Bowman said the combination of still-elevated inflation and continued economic growth meant that further rate increases are likely.

Traders expect an 86.5% chance of no rate hike at the Fed’s next policy meeting in September, according to CME FedWatch Tool.

Due on Thursday, the July Consumer Price Index (CPI) is expected to show a slight year-over-year acceleration. On a month-to-month basis, consumer prices are seen increasing 0.2%, the same rate as in June.

“CPI won’t be major surprise. It will match expectations most likely or slightly better than expectation, showing that inflation is cooling off,” Zaman added.

“The main indices of Wall Street closed down in the last session due to a widespread sell-off following the credit rating agency Moody’s (NYSE:MCO) downgrading of multiple small and mid-sized banks.”

“On Wednesday, major banks continued to face declines, with Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) experiencing drops of 1.0% and 1.5%, respectively.”

“China’s consumer prices fell, and factory prices continued dropping in July, reflecting challenges in boosting demand in the second-largest economy.”

As of 11:33 a.m. ET, the Dow Jones Industrial Average had declined by 154.86 points (0.44%) to 35,159.63. The S&P 500 was also down by 27.85 points (0.62%) to 4,471.53, while the Nasdaq Composite had dropped by 164.88 points (1.19%) to 13,719.44.

Among the leading 11 sectors in the S&P 500, seven showed gains. Energy stocks led the way, rising by 1.6% and reaching a nearly six-month peak, following the surge in crude oil prices.

Shares of casino owner Penn Entertainment surged by 7.6% due to a $2 billion agreement with Walt Disney’s ESPN to establish a sports betting venture.

Walt Disney’s shares rose 0.8% ahead of its quarterly results due after the bell.

Lyft (NASDAQ:LYFT) signaled it would double down on competitive pricing to catch up with rival Uber (NYSE:UBER), taking the shine off its strong earnings forecast and sending its shares down 5.4%.

Out of the 443 S&P 500 companies that shared their results by Tuesday, 78.6% exceeded analysts’ predictions, as per Refinitiv data.

Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and a 1.65-to-1 ratio on the Nasdaq.

The S&P index recorded 13 new 52-week highs and five new lows, while the Nasdaq recorded 47 new highs and 131 new lows.