1st LD Writethru: U.S. stocks drift lower after volatile trading

U.S. stocks inched down after wavering between gains and losses in a tight range Wednesday, as investors followed closely hints of the timing of a rate hike.

The Dow Jones Industrial Average fell 27.55 points, or 0.16 percent, to 17,635.39. The S&P 500 lost 3.92 points, or 0.19 percent, to 2,040.24. The Nasdaq Composite Index was down 9.85 points, or 0.20 percent, to 4,849.94.

With no major news coming in on Wednesday, the Federal Reserve' s two-day meeting next week claimed market attention. It is reported that the central bank is strongly considering dropping the language of "patient" in its approach toward rates hike before acting, which would pave the way for a discussion about rate increases at its June meeting, according to the Wall Street Journal.

Meanwhile, investors were still assessing the impact of the surging U.S. dollar. The greenback on Wednesday climbed to a 12- year high against the euro as the European Central Bank added stimulus into the economy while the Federal Reserve was moving closer to an interest rate hike.

Overseas, European shares rebounded strongly on Wednesday boosted by the falling euro, with the French stock market benchmark index CAC 40 rising 2.37 percent.

U.S. stocks suffered big losses on Tuesday, with both the Dow and the S&P 500 turning negative for the year, pressured by the soaring dollar and persisting concerns about debt talks with Greece. Endite