Stock Slump: Dollar Dominates as Fed Signals Cautious Path on Rate Cuts

Global stocks fell for the third day as the dollar surged, influenced by U.S. economic data and comments from Federal Reserve Chair Jerome Powell. Indications suggest a slower pace of rate cuts. Market reactions show volatility, with U.S. indices declining amid post-election optimism and policy implications.

Global stocks experienced a three-day decline while the dollar strengthened, sparked by U.S. economic indicators and remarks from Federal Reserve Chair Jerome Powell hinting at a slower trajectory for interest rate cuts by the central bank.

The Labor Department reported a drop in initial claims for unemployment benefits to a seasonally adjusted 217,000, slightly below economists' expectations of 223,000, suggesting that a weak October government payrolls report might be an outlier.

Investor enthusiasm cooled following the U.S. presidential election, with Wall Street indices stalling as bond yields rose. Notably, U.S. stocks fell on Thursday, with the Dow Jones, S&P 500, and Nasdaq all closing lower as investors adjusted to potential economic shifts.

(With inputs from agencies.)