The Globe and Mail reports in its Thursday edition that the S&P 500 and S&P/TSX Composite Index ended nearly flat on Wednesday, giving back earlier gains after Federal Reserve chair Jerome Powell said inflation in goods prices is expected to go up over the summer as President Donald Trump's tariffs work their way to consumers. A Reuters dispatch to The Globe says the U.S. central bank left interest rates unchanged, as expected. Stocks were moderately higher before Mr. Powell's comments. As he spoke, U.S. Treasury yields also pared most of their earlier drop. "Mr. Powell said if not for tariffs he would be cutting rates now," said Sahak Manuelian at Wedbush Securities in Los Angeles. Early in the day, initial jobless claims data showed the number of Americans filing new applications for unemployment benefits fell last week, but stayed at levels consistent with a further loss of labour market momentum in June. Investors also have been closely watching developments in the Middle East. Some worry about the possibility of a more direct U.S. military involvement in the Israel-Iran aerial war. Brent crude eased Wednesday to $76.42 (U.S.) per barrel while spot gold was down 0.4 per cent at $3,374.75 an ounce.