Market Jitters: Wall Street Slides Amid Interest Rate Uncertainty

Wall Street indices fell Friday, as the S&P 500 and Nasdaq recorded significant losses, driven by unease over interest rate paths influenced by strong economic data and President-elect Trump's cabinet picks. Investors adjusted rate cut expectations while stocks, especially in the tech sector, declined notably.

In a tumultuous trading session, Wall Street's main indices ended lower on Friday as the S&P 500 and Nasdaq faced their largest one-day declines in two weeks. Concerns over the Federal Reserve's path for interest rate cuts, alongside reactions to President-elect Donald Trump's cabinet selections, played into the market's uncertainties.

Federal Reserve Chair Jerome Powell highlighted continued economic growth, a robust job market, and inflation surpassing the 2% target, suggesting a restrained approach to future rate reductions. As a result, traders recalibrated their expectations, now assigning a 42% probability to no rate change in December, a significant increase from previous estimates.

The market's response concluded a dramatic week where focus oscillated from the election's impact to apprehensions surrounding rate policies. The tech sector, notably, was the hardest hit, with major indexes including the S&P 500 and Nasdaq witnessing their steepest weekly declines in over two months.

(With inputs from agencies.)