Investing.com — The S&P500 fell to tops on Friday after a weekly loss as the post-election rally faded after fresh signs of economic strength fueled concerns about fewer interest rate cuts from the Federal Reserve.
At 4:00 PM ET (21:00 GMT), the index was down 305 points, or 0.7%, down 1.4% and down 2.3%.
Treasury yields are rising as deep interest rates fade after retail sales exceeded expectations
The US rose slightly more than expected in October, rising 0.4% above the expected 0.3% last month, compared to September’s upwardly revised 0.8% gain. Robust consumer spending helped the economy maintain its strong growth pace last quarter.
At the same time, US import prices rose unexpectedly in October and recovered 0.3% last month after an unchanged 0.4% decline in September, the latest indication of lack of progress in lowering inflation in recent months.
“The stronger-than-expected results in retail spending underscore the storyline of continued consumer resilience maintaining solid economic conditions,” Stifel said in a Friday note.
The figures tempered expectations about the interest rate reduction trajectory ahead. Fed Chairman Jerome Powell warned Thursday that the strength of the U.S. economy will allow the Fed to take its time deciding how and when to cut rates.
Applied materials, Alibaba.com fall; Domino’s Pizza gives up profit, Pool climbs the Berkshire stakes
Among the big market moves, Applied Materials (NASDAQ:) fell 9% after quarterly results missed some Street expectations, with slowing sales from China a key point of contention amid a challenging demand backdrop for wafer fabrication equipment.
“So unless a company acquires a lot of WFE shares next year (like LRCX), we would remain on the sidelines,” UBS said in a note.
Domino’s Pizza (NYSE:) gave up gains to close 1% lower, while Pool Corporation (NASDAQ:) closed modestly higher after Berkshire Hathaway (NYSE:) took shares in the two companies.
Shares of Alibaba (NYSE:) fell 2% after the Chinese e-commerce giant reported moderate sales growth in the latest quarter.
Palantir (NYSE:) said it was moving its listing from the New York Stock Exchange to the Nasdaq Global Select Market, sending its shares up 8%.
The cabinet of newly-elected President Trump continues to take shape
President-elect Donald Trump is considering Fox Business Network host Larry Kudlow to take charge
The National Economic Council, the Wall Street Journal reported on Friday.
(Peter Nurse, Ambar Warrick contributed to this article.)
