Wall Street ends mixed; inflation may spur Fed hike

By Ovunc Kutlu

NEW YORK (AA) - Wall Street closed mixed Thursday as rising inflation increased the likelihood of a rate hike by the Federal Reserve next week.

The U.S. consumer price index rose 0.4 percent in August or 1.9 percent year-on-year, the Labor Department announced earlier.

With the annual level getting closer to the Fed's 2 percent inflation target, the likelihood that the central bank will raise its benchmark interest rate on Sept. 20 has increased.

Investors have taken a selling position in the market amid worries that a rate hike may be looming.

The S&P 500 fell 2 points to close at 2,495 while the Nasdaq lost 31 points to finish the day at 6,429.

The Dow, however, rose 45 points to end trading at 22,203 -- a new all-time high.