US stocks trimmed earlier gains and were mostly negative in late morning trading after comments from Federal Reserve Governor Jerome Powell that the economy could be ready for interest rate increases twice this year. The Nasdaq Composite index touched a record high earlier in the session, while the S&P 500 was less than seven points away from its all-time high, before they turned negative.
Global markets have been trading higher with European shares climbing to a three-week high, after Athens proposed new reforms on Monday, which were cautiously welcomed by euro zone finance ministers. Mohannad Aama, managing director at Beam Capital Management in New York, said it was normal for investors to take to the sidelines and take away some profits after a big rally.
"There is a sense that this is as good as it's going to get this summer," said Aama. At 11:46 am ET (1546 GMT) the Dow Jones industrial average was up 12.74 points, or 0.07 percent, at 18,132.52, the S&P 500 was down 0.37 points, or 0.02 percent, at 2,122.48 and the Nasdaq Composite was down 4.31 points, or 0.08 percent, at 5,149.66. Six of the 10 major S&P 500 sectors were lower, with the utilities index leading the declines with a 1.25 percent drop. Microsoft's 1 percent fall weighed the most on the Nasdaq and the S&P, while Boeing's 1.1 percent dip dragged the Dow. Sonic shares fell 11.9 percent to $30.14 after its forecast fell shorts of expectations.