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Stocks moved lower on Wednesday after the Federal Reserve tempered its forecast for the U.S. economy. 

The S&P 500 was down 0.17%, and the Dow Jones Industrial Average fell 0.49%, while the Nasdaq slumped 1%.

The central bank said it is closely monitoring international developments and assessing their implications on labor and inflation. In its statement, the Fed downgraded its outlook for U.S. household spending and business investment, noting that economic growth slowed to end last year. 

The Fed kept its federal funds rate at 0.25% to 0.5% following the conclusion of its January meeting.

Crude oil prices climbed above $32 a barrel on reports Russia's state-owned oil company Transneft and the Organization of the Petroleum Exporting Countries could make production cuts. Reports have yet to be confirmed, according to Reuters

Prices were under pressure earlier after weekly inventories rose at a much faster pace than expected. Crude inventories increased by 8.4 million barrels, more than double estimates of 3.3 million. By midday, West Texas Intermediate crude oil added 1.8% to $32.03 a barrel.

The energy sector was the best performer on markets. Major oilers including Chevron (CVX) - Get Chevron Corporation Report , Royal Dutch Shell (RDS.A) , Total (TOT) - Get Total SA Report  and BP (BP) - Get BP Plc Report climbed, while the Energy Select Sector SPDR ETF (XLE) - Get Energy Select Sector SPDR Fund Report added 1.5%. 

Apple (AAPL) - Get Apple Inc. Report , the world's largest company, slid 5% after sales fell for the first time since 2003. The tech giant announced its slowest growth in iPhone shipments on record, while overall sales of $75.9 billion missed forecasts of $76.6 billion. The company earned $3.28 a share, a nickel above estimates.

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New home sales in the U.S. jumped in December in the latest sign of resilience from the housing market. Sales of new U.S. single-family homes increased 10.8% to an annual rate of 544,000. November's sales were also revised up to 491,000 from 490,000. December's rate was well above estimates of 500,000. 

Stocks rallied on Tuesday with the Dow enjoying its best day of the year so far. A rebound in crude oil prices and a series of positive earnings reports helped to propel markets higher.

United Technologies (UTX) - Get n.a. Report increased 2% despite reporting a 5% drop in sales in its fourth quarter. The aircraft manufacturer generated revenue of $14.3 billion over the quarter, $1 billion below estimates. Adjusted earnings of $1.53 a share were in line with forecasts. The company expects to buy back $3 billion in shares this year.

Boeing (BA) - Get Boeing Company Report tumbled 6% Wednesday, on track for the biggest one-day drop in its history, after issuing weaker-than-expected guidance. The company expects full-year earnings between $8.45 and $8.65 a share, below forecasts of $9.41 a share. Boeing previously announced that it would cut production of its jumbo 747-8 jetliner to six a year, half previous output, starting in September.

Biogen (BIIB) - Get Biogen Inc. Report added 9% Wednesday after beating quarterly estimates on its bottom line. The drugmaker earned $4.50 a share in its fourth quarter, well exceeding forecasts of $4.06 a share. Revenue of $2.84 billion came in above expectations of $2.71 billion. Fiscal 2016 guidance came in slightly weaker than expected with a range of $11.1 billion to $11.3 billion nearly coming in short of $11.29 billion consensus.

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