Stocks Tumble as Fed Signals Slower Rate Cuts Amid Economic Growth

Global stocks experienced their largest drop in two months as economic indicators and Federal Reserve announcements suggested a conservative approach to interest-rate cuts. U.S. retail sales exceeded expectations, while import prices rose. Markets reacted to mixed signals from the Fed and legislative uncertainties following the U.S. election.

Global stocks witnessed a substantial decline, marking their biggest weekly drop in two months as indications from the Federal Reserve pointed to a slower pace of interest-rate cuts. Jerome Powell, Fed Chair, emphasized the continued economic growth and robust job market as factors for a cautious approach.

U.S. retail sales data surpassed expectations, with a 0.4% rise last month, complicating the economic outlook. Meanwhile, import prices unexpectedly increased, further influencing market dynamics amidst mixed signals on interest-rate adjustment strategies.

The aftermath of the U.S. presidential election saw initial market rallies fizzle, as President-elect Donald Trump's policies await scrutiny. Major stock indexes registered notable declines, with investors recalibrating expectations against the Fed's trajectory for monetary policy easing.

(With inputs from agencies.)