Stock Markets Stumble Amid Interest Rate Concerns

On Friday, the Nasdaq and S&P 500 geared up for significant losses following Federal Reserve Chair Jerome Powell's comments suggesting caution in interest-rate cuts. As treasury yields increased, rate-sensitive megacaps dropped, with Nvidia and Amazon among the decliners. Meanwhile, key indexes faced substantial weekly drops.

In a tumultuous session on Friday, the Nasdaq and S&P 500 braced for their worst performance in over two weeks after Federal Reserve Chair Jerome Powell signaled a cautious approach to future interest-rate cuts due to ongoing economic growth and persistent inflation above the Fed's target.

This led traders to adjust expectations for the December Fed meeting, with the CME FedWatch tool indicating increasing odds that interest rates will remain unchanged. Retail sales data showed stronger-than-expected performance, further supporting economic resilience and impacting market sentiment negatively.

Rate-sensitive technology giants like Nvidia and Amazon saw declines over 3%, contributing to a drop in key indexes, including the Dow, Nasdaq, and S&P 500, all set for notable weekly losses. Additionally, Applied Materials reported underwhelming revenue forecasts, further dampening market spirits.

(With inputs from agencies.)