Wall Street Stumbles as Powell Talks: Navigating Interest Rates and Inflation Concerns

Wall Street's indices fell following Federal Reserve Chair Jerome Powell’s remarks on cautious interest-rate cuts due to ongoing economic growth and inflation. Higher U.S. Treasury yields exerted pressure on equities, particularly tech stocks. Vaccine maker shares also dipped amid new political appointments affecting health policies.

Wall Street's main indices experienced a downturn on Friday after Federal Reserve Chair Jerome Powell indicated that the central bank would not rush into cutting interest rates. This announcement pushed U.S. Treasury yields higher, creating pressure on equities, especially impacting major tech stocks.

Powell's comments came following recent data highlighting persistent inflation, coupled with a slight increase in U.S. retail sales for October. The Federal Reserve's cautious approach is attributed to continued economic growth and a robust job market, despite rising inflation levels.

In the markets, major indexes including the Dow Jones, S&P 500, and Nasdaq faced declines, with tech stocks leading the downfall. Vaccine maker stocks also suffered after political appointments cast uncertainty on future health policies.

(With inputs from agencies.)