US Federal Reserve Chairman Jerome Powell holds a press conference
by Sinéad Carew and Lisa Pauline Mattackal
The New York Stock Exchange ended Friday after the latest statements from Fed boss Jerome Powell which suggest that the central bank could lower its rates at a slower pace than expected as the markets react to the appointments of the future Trump administration .
The Dow Jones index lost 0.70%, or 305.87 points, to 43,444.99 points. The broader Standard & Poor's 500 lost -78.55 points, or -1.32% to 5,870.62 points. The Nasdaq Composite fell -427.53 points, or -2.24% to 18,680.121 points.
Jerome Powell said Thursday there was no need for the Fed to rush to cut its key rates, given economic growth, a strong job market and above-average inflation. 2% target.
The president of the Federal Reserve of Chicago, Austan Goolsbee, agreed on Friday, saying that it would be logical for the central bank to slow down the pace of its rate cuts in the event of disagreement on the so-called neutral rate, the one which neither stimulates nor hinders economic growth.
Great uncertainty about the evolution of the American economy has dominated since the return of Donald Trump to the White House, the Republican candidate having promised to implement customs duties, lower taxes and deregulate the economy, which which could revive inflation and provoke a trade war with China in particular.
Data released Friday showed that U.S. retail sales rose a little more than expected in October, but the underlying momentum in consumer spending appeared to be slowing at the start of the fourth quarter.
Industrial production in the United States fell in October, by 0.3%, after a drop of 0.5% (revised) in September.
The markets ended the week down, after welcoming the electoral victory of Donald Trump, seen as a pro-business candidate, before worrying about the pace of decline in interest rates and the risks of inflation under the next administration.
Over the week, the S&P 500 lost 2.08%, the Nasdaq 3.15%, their biggest weekly decline in two months, while the Dow Jones fell 1.24%.
In terms of values, in the health sector, Moderna lost 7.3%, Pfizer ended down 4.7%.
Applied Materials fell 9.2% after announcing Thursday that it expects first-quarter revenue below Wall Street expectations, a sign of sluggish demand for non-AI chipmaking equipment. .
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