A 1.7% decline in Microsoft Corp MSFT.O and a 1.3% dip in Amazon.com Inc AMZN.O weighed on the S&P 500 and the Nasdaq. "I think the Fed will continue to jawbone the market's enthusiasm down and say 'No, we plan on raising two more times, but of course we are data dependent,'" said CFRA Research Chief Investment Strategist Sam Stovall. U.S. consumers' near-term inflation expectations dropped to a more than two-year low in June and the outlook over the next five years improved slightly, according to the University of Michigan's survey that also showed sentiment perking up.