Market Reaction to Fed's Stance: Stock Futures Slide

U.S. stock index futures dipped following remarks from Federal Reserve Chair Jerome Powell indicating no immediate plans for interest-rate cuts, affecting bond yields and equities. Investors now anticipate a slower pace of rate reductions. Vaccine makers faced pressure amid political appointments, and major indexes are poised for weekly losses.

U.S. stock index futures dropped on Friday as Federal Reserve Chair Jerome Powell suggested a cautious approach to interest-rate cuts, leading to higher bond yields and strain on rate-sensitive stocks.

Pointing to strong economic growth and a robust job market, Powell emphasized the need for careful consideration regarding rate adjustments. His comments lifted U.S. Treasury yields, causing Wall Street's major indexes to close lower.

Vaccine makers' stocks declined after President-elect's health department pick faced criticism. Overall, market focus shifted to inflation concerns under a potential second Trump presidency. Major stock indexes are on track for weekly losses.

(With inputs from agencies.)