S&P 500 Below 6000, Nasdaq Below 21,000 As US Indices Retreat on Powell’s No Hurry Comment

US stock markets continued to retreat again, with the S&P 500 falling below 6,000 points and NASDAQ below $21,000, on hawkish FED's Powell.

Skerdian Meta•Thursday, November 14, 2024•2 min read

Today US stock markets continued to retreat again, with the S&P 500 falling below 6,000 points, while the NASDAQ fell below $21,000, and the decline picked up pace as FED’s Powell implied patience in cutting interest rates.

US indices end in red for the fourth day this week

European stock markets surged higher today, with DAX 40 gaining more than 1%, however, US stocks which have been retreating all week, started the day on the back foot, which only got worse as the day went by. However, all Trump trades were retreating today, with Tesla, DJT, and weapons manufacturers among the laggards.

S&P 500 Chart Daily – This Pullback Doesn’t Threaten the Uptrend

In a speech in Dallas, FOMC Chairman Jerome Powell indicated there’s no immediate “need to be in a hurry to lower rates,” suggesting that a rate cut in December is increasingly unlikely. Following his comments, the probability of a December rate cut has fallen to around 60%, which marks a more hawkish stance than the market previously expected.

Comments from the Fed Chairman Jerome Powell in Dallas

Rate Policy:
- No immediate signals that the Fed needs to lower rates quickly.
- Moving gradually toward a neutral policy stance; policy remains flexible and data-dependent.
Inflation Outlook:
- Expects inflation to decrease but acknowledges the path may be uneven.
- Committed to fully addressing inflation until it stabilizes at target levels.
Economic Conditions:
- Strong U.S. economy allows the Fed to make measured policy decisions.
- Solid labor market, with inflation on a sustainable path toward the 2% goal.
- U.S. economic performance remains notably robust.

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This has led to some selling pressure in US equities just before the US markets closed, as well as in short-term bonds, while the U.S. dollar has strengthened modestly in response. Powell’s remarks reinforce the message conveyed by other Fed officials earlier in the week, signaling a shift in the tone from recent FOMC communications.

Closing Changes for Main European Indices

Stoxx 600: +1.1%
German DAX: +1.3%
France CAC: +1.3%
UK FTSE 100: +0.5%
Spain IBEX: +1.3%
Italy’s FTSE MIB: +1.9%

These gains reflect positive sentiment across European markets, with Italy’s FTSE MIB leading the advances.

S&P 500 Live Chart

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Skerdian Meta

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Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.