Markets Slump Amid Fed Signals and New Cabinet Nominations

The Nasdaq and S&P 500 experienced significant daily losses following remarks by Federal Reserve Chair Jerome Powell on cautious interest-rate cuts and U.S. President-elect Donald Trump's cabinet nominations. Market expectations for rate cuts decreased, and stocks of vaccine makers fell after Trump's selections raised investor concerns.

On Friday, the Nasdaq and S&P 500 faced their largest daily losses in weeks following Federal Reserve Chair Jerome Powell's remarks about a slower pace of interest-rate cuts. These comments, coupled with President-elect Donald Trump's cabinet picks, sent ripples through investment communities.

Traders revised their expectations for rate shifts, with odds indicating less likelihood of changes at the Fed's December meeting. Economic data, including stronger-than-anticipated retail sales, bolstered views of ongoing economic strength, complicating the outlook for looser monetary policy.

Investor anxiety further deepened as Trump signaled plans to appoint Robert F Kennedy Jr. to the health department, negatively impacting vaccine producer stocks. Information technology suffered the worst impact among major industry sectors, reflecting broader market volatility and sector rotations.

(With inputs from agencies.)