By Indexes ended lower on Thursday, with the election rally fizzling out as traders digested remarks from Federal Reserve Chair Jerome Powell and assessed the latest inflation data.
The S&P 500 and Nasdaq fell more than 0.5%, while the Dow Jones Industrial Average lost over 200 points. The 10-year Treasury yield, meanwhile, remained nearly flat at 4.447%, hovering close to its highest level since July.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Thursday:
- S&P 500: 5,949.17, down 0.6%
- Dow Jones Industrial Average: 43,750.86, down 0.47% (-207.33 points)
- Nasdaq composite: 19,107.65, down 0.64%
The slide comes after Powell signaled the Fed is in no rush to cut interest rates while the US economy remains on solid footing.
“The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said during prepared remarks at an event in Dallas. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”
Powell added the US has had the best domestic growth of any major economy, and emphasized the strength of the labor market. He said the October jobs report’s slowing job growth was largely due to storm-related damage.
Powell’s comments come as investors seek hints of the Fed’s intended easing path after a 25 basis point cut last week. Trump’s election win has sparked worries that inflation could rise again under his proposals for broad tariffs and mass deportations, which could cause the Fed to pause rate hikes, economists say.
Traders expect the central bank to cut another 25 basis points at its December meeting before pausing in January, according to the CME FedWatch tool.
Powell’s comments also follow the latest inflation reading which shows wholesale prices rose 0.2% in October, according to data from the Bureau of Labor Statistics.
The data was in line with expectations but showed inflation remains somewhat sticky, with a year-over-year increase of 2.4%.
The core producer price index, which excludes food and energy prices, rose 0.3% in the month and 3.1% year-over-year.
Meanwhile, jobless claims data on Thursday, showed weekly claims dropped to their lowest since May, falling to 217,000 last week. That marks a 4,000 decline from the week prior.
Here’s what else is going on:
- Investors are underestimating how deep rate cuts will be in 2025, Goldman Sachs says.
- EV makers slid on report Trump wants to scrap the EV tax credit.
- Disney stock surged as rare three-year forecast sees strong profit growth ahead.
- China’s weak economy and record US production will lead to a surplus of one million barrels of oil a day next year, IEA says.
In commodities, bonds, and crypto:
- Oil futures were up. West Texas Intermediate crude rose 0.3% to $68.63 a barrel. Brent crude, the international benchmark, climbed 0.3% to $72.48 a barrel.
- Gold rose fell 0.5% to $2,572 an ounce.
- The 10-year Treasury was nearly flat at 4.447%.
- Bitcoin was down 1.4% to $87,531.
