Wall Street lower on NY Fed chief's rate hike comments

"The labor market is getting tighter and we're starting to see signs of wage gains starting to accelerate, so I think we're getting closer to that point in time when it will be appropriate to actually raise short-term rates again," Dudley, a permanent voting member of the Federal Reserve, said in an interview on Fox Business Network. Dudley's comments raised expectations among traders of an interest rate hike this year - they now see a 12 percent chance of a hike in September, up from 9 percent