U.S. stock markets closed lower on Wednesday, with the Nasdaq Composite leading the declines as technology stocks faced significant pressure ahead of Thanksgiving. Concerns arose regarding the Federal Reserve's potential caution on rate cuts, following persistent inflation data that indicated a stall in progress toward lowering inflation.

Preliminary data revealed that consumer spending rose solidly in October, reflecting the U.S. economy's robust growth trajectory. However, this strong consumer activity has raised questions about the Fed's monetary policy direction.

The S&P 500 fell by 22.85 points, or 0.38%, closing at 5,998.78 points, while the Nasdaq Composite dropped 113.80 points, or 0.59%, to finish at 19,061.78. The Dow Jones Industrial Average also experienced a decline, losing 136.31 points, or 0.31%, to end at 44,723.23. As markets prepare for the holiday, the focus remains on economic indicators and the Fed's response to ongoing inflationary pressures.