Wall Street Wobbles: Market Reacts to Fed's Signal & Trump's Cabinet Picks

Wall Street's main indexes experienced declines as traders reacted to signals of a slower pace of interest rate cuts from Federal Reserve Chair Jerome Powell and to President-elect Donald Trump's cabinet picks. Despite solid economic data, market expectations for future rate cuts decreased, causing volatility.

Wall Street's major indices closed in the red on Friday after Federal Reserve Chair Jerome Powell alluded to a slower pace of interest rate cuts. The market also reacted to the cabinet selections announced by U.S. President-elect Donald Trump.

In remarks made on Thursday, Powell highlighted ongoing economic growth, a strong job market, and inflation above the Federal Reserve's target of 2% as factors that allow for a cautious approach to future rate cuts. Traders adjusted their expectations, with an increased belief that the Fed will hold rates steady at its December meeting.

Adding to the market's turmoil, economic data showed retail sales and import prices rose more than anticipated in October, which boosted inflation concerns. Moreover, vaccine makers' and food companies' stocks dipped following Trump's nomination of Robert F. Kennedy Jr. to lead the Department of Health and Human Services, known for his controversial views on vaccines.

(With inputs from agencies.)