• The Dow Jones Industrial Average .DJI ended down 0.4 percent at 26,385.28 points, while the S&P 500 .SPX lost 0.33 percent to 2,905.97. During the session, the S&P 500traded up as much as 0.53 percent.

The Nasdaq Composite .IXIC dropped 0.21 percent to 7,990.37.

A Wall Street rally collapsed and stocks turned negative shortly before the market close on Wednesday after investors reassessed the Federal Reserve’s policy statement and reduced their risk as they weighed how long the U.S. central bank would continue to raise interest rates.

U.S. stocks initially extended gains after the Fed, as expected, raised interest rates and left its monetary policy outlook for the coming years largely unchanged amid steady economic growth and a strong job market.

• Asia markets were mixed on Thursday on the back of U.S. Federal Reserve Chairman Jerome Powell's comments on inflation after the central bank decided to increase interest rates.

The Nikkei 225 in Japan slipped 0.43 percent in the early hours of trading action, with most sectors falling. In South Korea, the Kospi advanced by 0.1 percent on its first trading day of the week after returning from a public holiday period.

• The moves on Wall Street came after Powell told reporters that the Fed did not see inflation surprising to the upside. Powell's comments came after the U.S. central bank announced that it was increasing interest rates by 25 basis points — its third hike this year.

Powell also discussed the issue of trade tariffs and the ongoing trade war between the U.S. and China, saying the Fed had heard a "rising chorus of concerns from businesses all over the country."

"If this, perhaps inadvertently, goes to a place where we have widespread tariffs that remain in place for a long time, a more protectionist world, that's going to be bad for the United States economy," he warned.

Reference: Reuters, CNBC