Stocks turned lower in afternoon trading on Thursday as investors weighed the latest comments by Federal Reserve officials and the outlook for possible interest rate cuts this year.

The Dow Jones Industrial Average tumbled more than 500 points, or 1.3%, to 38,618, the S&P 500 lost 1.1% and the Nasdaq dropped 1.2%

Among the comments, Minneapolis Fed Bank President Neel Kashkari said that at the central bank’s meeting last month he penciled in two rate cuts this year but that if inflation continues to stall, none may be required this year.

Earlier on Thursday, Richmond Fed President Thomas Barkin said the central bank has “time for the clouds to clear” on inflation before starting to cut rates.

Stocks were higher earlier in the day following jobless claims data that helped to underpin rate-cut hopes.

The data showed the number of Americans filing new claims for unemployment benefits increased more than expected last week.

Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Conn., said: “while everybody would like lower interest rates, it’s a want, not a need. In other words, we’re kind of fine where we are.”

Investors are looking forward to Friday’s monthly US jobs report for further clues on the labor market and inflation.

Economists polled by Reuters expect the nonfarm payrolls for March to fall to 200,000 from 275,000 in February, while the unemployment rate will likely remain steady at 3.9%.

On the plus side, Levi Strauss shares jumped after the apparel maker raised its annual profit forecast, citing savings from its recent cost-cutting measures and fewer discounts.