By Joe Wallace and Vicky Ge Huang
Stocks fell Friday as traders slashed expectations for a December rate cut after signals from senior Federal Reserve officials and stronger-than-expected retail sales data.
Fed Chair Jerome Powell said Thursday the solid economy would allow the central bank to take its time in deciding how quickly to loosen policy further. Meanwhile, new data showed two months of surprisingly robust growth in retail sales, adding to evidence of U.S. economic strength.
For more on Friday's markets and the Fed, see here.
Also weighing on U.S. and global markets: Shares of major drugmakers, including Moderna, Pfizer and AstraZeneca, dropped Friday after Trump nominated Robert F. Kennedy Jr., a vaccine skeptic, to be health and human services secretary.
Chip stocks led the technology sector lower. Applied Materials shares plunged more than 9% after the semiconductor-equipment company gave a weaker-than-expected sales outlook. Nvidia and KLA also retreated 3% and 5%, respectively.
The post-election rally continues to cool as investors process potential policy changes under the new Trump administration. Major U.S. stock indexes all ended the week on a downbeat note.
"Investors are having to juggle a lot of unknowns heading into next year, which is why we could see some volatility in the weeks ahead," said Callie Cox, chief market strategist at Ritholtz Wealth Management.
In recent trading:
Major stock indexes fell, with the tech-heavy Nasdaq Composite falling more than 2%. The S&P 500 was down 1.3%, and the Dow dropped more than 300 points, or 0.7%.
Treasury yields ticked higher. The yield on the benchmark 10-year note inched higher to 4.426% after settling at 4.425% Thursday.
Bitcoin prices climbed above $90,000. The cryptocurrency traded at around $91,000 as of 4 p.m. ET after striking a new intraday record above $93,000 earlier this week.
The WSJ Dollar Index slipped, after settling Thursday at a two-year high.
Global stock markets were broadly lower. Mainland Chinese stocks fell after mixed economic data from the world's second-largest economy. Pharma and tech shares weighed on the Stoxx Europe 600.
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(END) Dow Jones Newswires
November 15, 2024 16:17 ET (21:17 GMT)
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