US stocks continue decline on rate cut pause prospects
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: AFP
WASHINGTON - US stocks finished lower on Nov 15, as traders contemplated a slower path of rate cuts in the wake of comments from Fed chairman Jerome Powell.
Mr Powell said on Nov 14 that the Fed was in no hurry to cut rates, raising traders’ concerns that there may not be a rate cut in December.
“Certainly, Powell’s speech has triggered some scepticism about the path of rates, with potentially December being a skip instead of another cut,” Edward Jones senior investment strategist Angelo Kourkafas told AFP.
“But we do have another inflation and jobs report before that, so there is still a good sense we might see another rate cut in December,” he added.
The Dow Jones Industrial Average ended the trading day down 0.7 per cent to 43,444.99.
The broad-based S&P 500 Index fell 1.3 per cent to 5,870.62, while the tech-focused Nasdaq Composite Index was the day’s biggest lose, dropping 2.2 per cent to 18,680.12.
Pharmaceutical stocks were also partially responsible for the slump, with major firms falling after President-elect Donald Trump nominated vaccine sceptic Robert F. Kennedy Jr to be the US Health Secretary.
Biotech company Amgen dropped 4.2 per cent, while vaccine maker Moderna plunged 7.3 per cent. AFP
