US equities slumped Friday morning as Wall Street pulled back rate-cut expectations for December.
The scaling-back started on Thursday afternoon after Federal Reserve Chair Jerome Powell indicated that central bank will take its time in easing policy, citing ongoing US economic strength.
"The economy is not sending any signals that we need to be in a hurry to lower rates," he said.
The odds of a 25-basis-point rate cut fell to less than 60% shortly after Powell's comments, down from 80%, as calculated by the CME FedWatch Tool . The probability remained lower, around 58%, on Friday morning.
Also impacting rate-cut expectations is a streak of encouraging economic data. New figures on Friday showed US retail sales advanced in October, boosted by a jump in autos purchases.
While the three major indexes headed for their first losing week since the election, bond yields climbed. The 2-year yield — most sensitive to near-term rate forecasts — has risen 7 basis points in the last two days.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
Here's what else is going on:
In commodities, bonds, and crypto:
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