US stocks limped into the final minutes of the afternoon session after surging at the open on data showing that inflation had moderated, but this was unlikely to prevent the Federal Reserve from raising interest rates again this year.

The S&P 500 fell 0.4% on the day, while the Nasdaq 100 fell 0.9%. Six of the last seven sessions saw the tech-heavy gauge fall. Policy-sensitive two-year Treasury yields fell as much as 15 basis points before leveling off at 3.97%. Swaps markets showed that the odds of a Fed rate hike in May remain favorable, while traders increased their bets that the central bank will cut rates later this year.

Markets rose early in the day after data showed that US consumer prices rose 0.1% in March, just shy of the 0.2% increase predicted by economists. The closely watched core CPI figure, which excludes food and energy, increased by 0.4%, matching the median estimate and following the previous month's 0.5% gain.

Meanwhile, Fed policymakers lowered their expectations for peak rates as they sought to strike a balance between reining in inflation and stabilizing the banking sector, according to March Federal Open Market Committee minutes released Wednesday. Staff at the Fed now predict a "mild recession" later this year. Officials have been sending mixed messages about the battle to keep rising prices in check. Earlier, San Francisco Fed President Mary Daly stated that additional rate hikes may not be necessary, while Richmond Fed President Thomas Barkin stated that "we still have a ways to go."