Stock market today: Dow, S&P 500, Nasdaq slide as Powell says Fed in no 'hurry' on rate cuts

Published On Nov 14, 2024, 4:04 PM

US stocks faced a downturn on Thursday driven by comments from Federal Reserve Chair Jerome Powell, who indicated there is no rush to lower interest rates given the strength of the economy. This led to a sell-off in major indices, with the Dow Jones down 0.5%, S&P 500 down 0.6%, and Nasdaq down about 0.7%. Concerns about inflation were heightened by new data showing that wholesale inflation rose more than expected. The recent Republican sweep in Congress has fueled optimism but signs of fatigue were seen in some sectors, particularly among 'Trump trade' stocks like Tesla, which fell over 5% due to planned elimination of the $7,500 EV tax credit. Conversely, vaccine stocks dropped as Trump is expected to appoint an anti-vaccine advocate to lead the Department of Health and Human Services.

Stock Forecasts

Investors may see continued pressure on Tesla due to the loss of consumer incentives and recent recalls affecting its reputation. Additionally, the broader market may face volatility as expectations for interest rate cuts become more uncertain based on Fed comments. Therefore, caution is advised in the stocks influenced by the 'Trump trade'.

With a strong earnings report and positive guidance, Disney seems poised for continued growth, contrasting with broader market trends. Investors might respond favorably to Disney's strategic positioning in the streaming market. This could be an opportunity for growth amidst market uncertainty.

Given the merger termination between Tapestry and Capri, Tapestry's strong rally signals investor confidence in its standalone business performance, while Capri may face headwinds. Tapestry could present an attractive investment opportunity for those seeking exposure in the retail sector.

Related News

Tesla stock was under pressure on Thursday afternoon as the broader Trump trade was fading after a furious post-election rally.

Tesla shares slide as 'Trump trade' fades, EV maker issues 6th Cybertruck recall this year.

Comments from Jerome Powell could set the tone for rate cuts as the market assesses the impact of a Republican sweep in D.C.

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