U.S. stocks dipped on Friday, with all three major indexes—S&P 500, Dow Jones Industrial Average, and Nasdaq Composite—ending the week with losses. The drop was likely influenced by Federal Reserve Chairman Jerome Powell’s comments that policymakers are not in a hurry to cut interest rates further.
The benchmark S&P 500 fell by 78.55 or 1.32% to close at 5,870.62 points after going as low as 5,854.58. It ended the week down by 2.30%.
Blue-chip Dow Jones is down by 1.39% for the week after closing at 43,444.99. It lost 305.87 points or 0.70% on Friday.
Tech-heavy Nasdaq had the steepest fall, losing 502.54 or 2.40% to close at 20,394.13. The index is now down 3.67% for the week.
The stocks have been on a rally since the US presidential elections, reaching all-time heights several times. However, this surge was largely fueled by expectations that the Fed would deliver another rate cut in December.
Speaking with reporters on Thursday, Powell indicated that lowering borrowing rates isn’t guaranteed due to recent economic data.
“The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”