NEW YORK, May 2 (Xinhua) -- U.S. stocks declined on Thursday, extending the losses in the previous session, after the Federal Reserve dampened hopes for any potential rate cuts soon.

The Dow Jones Industrial Average erased 122.35 points, or 0.46 percent, to 26,307.79. The S&P 500 was down 6.21 points, or 0.21 percent, to 2,917.52. The Nasdaq Composite Index retreated 12.87 points, or 0.16 percent, to 8,036.77.

Eight of the 11 primary S&P 500 sectors closed lower, with energy down 1.71 percent, leading the laggards. Health care gained 0.47 percent, outperforming others.

The U.S. Federal Reserve on Wednesday left interest rates unchanged after concluding a two-day policy meeting, citing lackluster inflation.

Fed Chairman Jerome Powell said at a news conference that the central bank's policy stance "is appropriate" at the moment and "we don't see a strong case for moving in either direction," adding that the recent weakness in price pressures is likely transitory and inflation will return to the target of 2 percent over time.

The remarks pushed back traders' expectations of a possible rate cut, denting market mood, experts noted.

Wall Street also digested some corporate news and a slew of economic data.

Tesla stock jumped 4.31 percent after the electric-car maker unveiled plans to raise about 2.3 billion U.S. dollars by selling a mix of debt and equity.

On the economic front, in the week ending April 27, U.S. initial jobless claims, a rough way to measure layoffs, stood at 230,000, unchanged from the previous week's unrevised level. Enditem