The Dow added more than a tenth of a percent, the S&P 500 dipped marginally and the Nasdaq shed more than three-tenths of a percent.

Key inflation data from the Commerce Department showed that while prices in December rose moderately, inflation is continuing to ease, with the annual uptick below 3% for a third straight month.

Bill Fitzpatrick is Portfolio Manager at Logan Capital Management.

"The stock market reaction today is likely in response to the inflation numbers, that personal consumption expenditure number, which was very favorable. It showed that inflation is coming down and it would support the notion that the Federal Reserve can begin cutting interest rates. But that's the good news. The bad news is, is perhaps that was already priced in. The market is already expecting interest rate cuts and that's why we had a muted reaction from the markets today."

In earnings news, Intel shares tumbled about 12% to a six-week low after the company gave a revenue forecast that badly missed estimates as it plays catch-up in the AI race while also dealing with a weak PC market.

Shares of chip manufacturing tools maker KLA Corp dropped more than 6.5% following a disappointing third-quarter revenue forecast.

American Express shares jumped more than 7% and hit a record high after the credit card firm forecast a higher-than-expected annual profit. Visa declined more than a percent-and-a-half after the world's largest payments processor's tepid current-quarter revenue growth forecast.

And shares of Apple fell 1% ahead of its quarterly report next Thursday. The iPhone maker and Intel were among the stocks weighing most on the S&P 500.