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

At midday, the Dow Jones Industrial Average dipped 234.95 points, or 0.89 percent, to 26,195.19. The S&P 500 was down 20.36 points, or 0.70 percent, to 2,903.37. The Nasdaq Composite Index sank 60.19 points, or 0.75 percent, to 7,989.45.

Ten of the 11 primary S&P 500 sectors fell in midday trading, with energy down more than 1 percent, leading the laggards. Real estate gained a modest 0.1 percent.

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 down traders' expectations of a possible rate cut, denting market mood, experts noted.

Wall Street is also focusing on corporate earnings and a slew of economic data.

More than half of the S&P 500 companies have reported quarterly earnings. Of the companies that have reported by far, about 74.7 percent have topped analysts' estimates, according to data from FactSet.

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, said the Department of Labor Thursday. Economists polled by MarketWatch had estimated the weekly new claims would fall to seasonally adjusted 215,000. Enditem