Stocks Tumble As Traders Rethink Fed’s Action, VIX Spikes 17%, Nasdaq Erases Post-Trump Gains: What’s Driving Markets Friday?
Risk aversion dominated Wall Street in the final session of the week, driving sharp losses across major indices.
Investors grappled with growing uncertainties surrounding the economic impacts of Donald Trump‘s policies and the Federal Reserve’s next moves.
Fed Chair Jerome Powell‘s remarks from the previous day weighed heavily on risk assets. Powell signaled no need to lower rates, citing the economy’s resilience and emphasizing the importance of fully finishing the inflation jobs.
Boston Fed President Susan Collins added to the uncertainty on Friday, stating she needs to see additional data before deciding on further rate cuts at the Federal Reserve’s upcoming policy meeting.
Expectations for a 25-basis-point rate cut in December were significantly scaled back, with odds falling to 59%, down from 82% just a day earlier.
U.S. indices are poised to end the week in negative territory, as optimism fueled by Trump’s win fizzled. Tech stocks were hit hardest, with the …
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