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Stock market today: Dow, S&P 500, Nasdaq slide as Powell says Fed in no 'hurry' on rate cuts
US stocks slid on Thursday as the post-election rally stalled further and investors assessed remarks from Federal Reserve Chair Jerome Powell, who said in a speech that the central bank does not need to be "in a hurry" to lower interest rates.
Markets took a noticeable step lower after Powell's comments. The Dow Jones Industrial Average ( ^DJI ) slipped 0.5%, or more than 200 points, while the S&P 500 ( ^GSPC ) dipped 0.6%. The Nasdaq Composite ( ^IXIC ) was down about 0.7%, coming off a mixed day for the three major gauges.
Though the mood is muted, stocks are still near recent records after the latest consumer inflation data kept hopes for a December rate cut aloft . But a reading on wholesale inflation showed prices firmed slightly more than expected in October, prompting fresh questions on the Fed's path next year.
The focus is on how the Federal Reserve and its chair sees inflation developing as investors gauge the odds of rates going back to staying higher for longer. To that point, Powell stressed the US's economic strength, saying the Fed would be "watching carefully" to make sure inflation measures stay within an acceptable range.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Meanwhile, Republicans held onto their slim majority in the House of Representatives, handing President-elect DOnald Trump and his party a "trifecta" — unified control of power across Washington. The sweep limits curbs on implementing the incoming president's aggressive economic agenda , which has helped spur the post-election breakneck rally in stocks.
In some corners of the market, the "Trump trade" is showing signs of fatigue. Tesla ( TSLA ) stock declined over 5% as Reuters reported Trump's administration will look to eliminate the $7,500 EV tax credit for consumers.
Meanwhile, vaccine stocks, including Moderna ( MRNA ) and Novavax ( NVAX ), slid into the close after reports said Trump will name anti-vaccine activist Robert F. Kennedy Jr. to lead the Department of Health and Human Services.