Stocks declined from record highs as traders looked to the corporate earnings, as well as economic releases showing the chance for inflation pressures, combined with hawkish remarks from Fed's Kaplan earlier today.
The S&P trimmed its biggest monthly advacen since November, with the likes of technology as well as energy shares leading the decline.
Twitter shares dropped after they showed a slow start to the year in regards to advertising revenue.
Although they lived up to profit expectations from Wallstreet, Chevron showed weakness after investors were dissapointed as they expected a revival on buybacks.
Indications of heavy risk taking in the markets indicate that the time has come to start the debate on the reduction of bond-buying, a sentiment shared by Fed's Kaplan in his remarks earlier today, breaking ranks with Fed's Powell.
Data underlines that personal incomes went up heavily in March which was driven by fiscal stimulus., the biggest increase since 1946.
A primary measure of consumer prices that is used by The Fed as a target also had a large increase, the biggest since 2018.
JP Morgan encouraged traders to prepare for a resurgance of reflation trade, as the economic reopening is gathering pace.
Credit Suisse's Golub raised his bar on the forecast for the stock benchmark, citing a "red-hot economy fueling earnings".