U.S. stocks fell before the bell on Friday, on track for weekly losses, as investors took a cue from Chairman Jerome Powell that the Federal Reserve will not rush to cut rates.
S&P 500 futures (ES=F) fell more than 0.5%, while Dow Jones Industrial Average futures (YM=F) fell roughly 0.4%. The tech-heavy Nasdaq 100 (NQ=F) led declines, with futures down 0.8%.
Powell’s hawkish comments put a damper on markets as initial optimism about President-elect Donald Trump’s policies begins to wane. The S&P 500 (^GSPC) has already reversed a third of its post-election rally, and the Nasdaq Composite (^IXIC) is bracing for a weekly loss of nearly 1%.
Wall Street is once again puzzling over where the Fed will move next year, a question already clouded by this week’s inflation data. As of Friday, traders at the December policy meeting estimated a 62% chance of a rate cut, up from 72% the day before, according to CME’s FedWatch tool. Bets on an easing in January stand at 73%, up from the previous 81%.
Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards
October retail sales data, due later on Friday, can be factored into these calculations as an insight into the state of consumers. The report is the last of its kind before the start of the holiday shopping season.
At the same time, investors were keeping a close eye on Trump’s preparations for power after vaccine stocks fell amid reports that Robert F. Kennedy Jr. would be appointed top health official. JPMorgan Chase (JPM) CEO Jamie Dimon made it clear Thursday that he will not join the new president’s team.
Meanwhile, shares of Domino’s Pizza (DPZ) and Pool Corp. jumped. (POOL) in the premarket after filings showed Warren Buffett’s Berkshire Hathaway bought the stock.
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Live stock market coverage for Friday, November 15, 2024
