Investing.com– The S&P500 slipped top to weekly loss Friday, as the post-election rally fizzled out following fresh signs of economic strength that stoked concerns about fewer Federal Reserve rate cuts.
At 4:00 p.m. ET (2100 GMT), the Dow Jones Industrial Average fell 305 points, or 0.7%, the S&P 500 index dropped 1.4%, and the NASDAQ Composite slipped 2.3%.
Treasury yields climb as deep rate-bets fade after retail sales beat expectations
US retail sales increased slightly more than expected in October, rising 0.4% last month above the 0.3% expected, and compared with the upwardly revised 0.8% advance in September. Robust consumer spending helped the economy maintain its strong pace of growth last quarter.
At the same time, US import prices unexpectedly rose in October, rebounding 0.3% last month after an unrevised 0.4% decline in September, the latest indication of lack of progress lowering inflation in recent months.
“The stronger-than-expected showing in retail spending underscores the storyline of a persistently resilient consumer, perpetuating solid economic conditions,” Stifel said in a Friday note.
The data eased expectations about the rate-cut path ahead. Fed Chair Jerome Powell warned on Thursday that strength in the U.S. economy will allow the Fed to take its time in deciding how and when to lower interest rates.
Applied Materials, Alibaba fall; Domino’s Pizza gives up gains, Pool climbs on Berkshire stake
Among major market movers, Applied Materials (NASDAQ:AMAT) fell 9% after its quarterly earnings missed some street expectations, with slowing revenue from China a key point of contention amid a challenging demand backdrop for wafer fab equipment.
“So unless a company is gaining a lot of WFE share next year (like LRCX), we would remain on the sidelines,” UBS said in a note.
Domino’s Pizza (NYSE:DPZ) gave up gains to close 1% lower, while Pool Corporation (NASDAQ:POOL) closed modestly higher after Berkshire Hathaway (NYSE:BRKa) took stakes in the two firms.
Alibaba (NYSE:BABA) stock fell 2% after the Chinese e-commerce giant reported moderate revenue growth in is latest quarter.
Palantir (NYSE:PLTR) said it was moving its listing to the Nasdaq Global Select Market from the New York Stock Exchange, sending its shares 8% higher.
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(Peter Nurse, Ambar Warrick contributed to this article.)