The benchmark United States indices recovered from the selloff seen in the last two sessions to end marginally higher on Wednesday, with the Dow Jones Industrial Average and the S&P 500 indices posting the highest monthly gains since March 2016.
"If the Atlanta Federal Reserve forecast that US first-quarter growth could be as high as 5.4% proves true, Treasury yields and confidence will nearly certainly soar, but such a strong first quarter GDP figure would also make a rate hike in March by the US Federal Reserve a foregone conclusion, so be careful what you wish for", he added.
However, stronger-than-expected private sector job data for January and pending home sales data for December renewed investor optimism and helped indices close in green for the first time in the week.
The S&P 500 was down 17.47 points, or 0.61 per cent, at 2,804.51 and the Nasdaq Composite was down 27.19 points, or 0.37 per cent, at 7,358.68.
Technology companies also fell. The Russell 2000 index of smaller-company stocks picked up 1 point, or 0.1 percent, to 1,576.
Losses in health care stocks were offset by gains in technology companies and other sectors.
Traders were still reacting to the news, but shortly after the announcement spread betting quotes were pointing to the Dow Jones average opening at around 25,956, down 231 points, while the S&P 500, which closed at 2,822 last night, was trading at around 2,801.
However, nonfarm productivity fell 0.1 percent in the fourth quarter, which was the first drop since the first quarter of 2016, while unit labor costs rose 2.0 percent in the final three months of 2017. The stock added $8.18 to $195.07. The stock was the biggest gainer in the S&P 500, picking up $5.89 to $46.47.
Shares of Electronic Arts rose 7% after posting sharp growth in live services revenue in the holiday quarter, while Xerox gained 4.4% after shrinking its loss and sealing a deal in which Japan's Fujifilm Holdings will take a majority stake.
Google-parent Alphabet fell 5.2 percent after its profit also misses analysts' estimates. Brent crude, used to price global oils, gained 26 cents to $69.15 per barrel in London.
Benchmark U.S. crude oil rose $1.07, or 1.7 percent, to settle at $65.80 per barrel on the New York Mercantile Exchange.
Investors have been edgy in this week's sessions due to higher yields on US Treasury bonds and the chance tightening monetary policy will derail the stocks rally.
That caused the 10-year Treasury yield to surge to 2.8450 percent the highest since January 2014, which could make returns on Treasuries look more attractive relative to stocks.
CURRENCIES: The dollar rose to 108.94 yen from 108.78 yen on Tuesday.
The Nasdaq fell 108 points, or 1.5 percent, to 7,278. The euro strengthened to $1.2478 from $1.2410. But Hong Kong's Hang Seng index dipped 0.1 percent to 32,843.20 and China's Shanghai Composite Index lost 0.9 percent to 3,449.93. Over in Sydney, the S&P/ASX 200 gained 0.71%.