The main indexes on Wall Street closed lower on Wednesday, with the Nasdaq leading the declines due to a drop in technology stocks ahead of Thanksgiving.

The S&P 500 dropped 0.38% to finish at 5,998.78 points, while the Nasdaq Composite lost 0.59% to end at 19,061.78.

Concerns over the Federal Reserve's cautious stance on potential rate cuts were fueled by persistent inflation data. Recent reports showed strong consumer spending growth in October, indicating a robust performance of the U.S. economy, but efforts to reduce inflation seem to have stalled.

Market participants are now expecting a 25 basis point rate cut at the Fed's December meeting, while rates are expected to remain unchanged in January and March. Investors are also considering the implications of President-elect Donald Trump's recent announcement on tariffs on imports from Mexico, Canada, and China, which is contingent on addressing issues related to fentanyl and illegal immigration.