US stocks traded lower on Friday as the post-election rally lost momentum. The Federal Reserve signaled it is not in a rush to continue cutting rates, reducing market bets on a December rate cut. October retail sales in the US rose 0.4% month-over-month, exceeding expectations.

At market open, the Dow Jones Industrial Average fell 155.70 points, or 0.36%, to 43,595.16; the Nasdaq Composite dropped 179.55 points, or 0.94%, to 18,928.10; and the S&P 500 Index declined 38.47 points, or 0.65%, to 5,910.70.

As of 10:10 AM, EST (or 06:10 PM in Riyadh), the broad-based S&P 500 index(SPX.US) depreciates by 61 points or 1.03% to 5,888, the tech-heavy NASDAQ(IXIC.US) tanks 310 points or 1.62% to 18,798, and the blue-chip Dow Jones Industrial Average(DJI.US) sheds 293 points or 0.67% to 43,458.

On Thursday, US stocks closed lower as the post-election rally showed signs of slowing down. The Dow Jones fell over 200 points, and the S&P 500 and Nasdaq each declined about 0.6%.

In an event in Dallas on Thursday afternoon, Federal Reserve Chairman Jerome Powell stated that the central bank is not in a hurry to cut rates. His remarks put pressure on the stock market.

Powell commented that the US economy is recovering well, the labour market is robust, and inflation has come down from its peak and is heading towards the 2% target, thus there is no urgent need to cut rates. He expects inflation to continue decreasing towards the target, but noted that the process may be volatile.

Following Powell's speech, the rate market lowered bets on a December Fed rate cut. Analysts suggest that inflation will remain above the Fed's 2% target, adding uncertainty to post-December meeting actions.

Economic Data:

Main Content: The U.S. Census Bureau reported that retail sales for October rose by 0.4% month-over-month, surpassing the forecasted 0.3%. Estimates from 64 economists ranged from a decline of 0.1% to a rise of 0.6%, with September's sales growth revised up from 0.4% to 0.8%.

Breakdown:

• Core Retail Sales: Excluding food and fuel prices, core retail sales increased by 0.1% month-over-month in October, below the forecast of 0.3%, and down from the previous 0.5%.
• Excluding Autos: Retail sales, excluding auto sales, grew by 0.1% month-over-month.

Scott Helfstein, head of investment strategy at Global X, observed that US retail sales data is more valuable for the Federal Reserve and investors compared to the CPI report released earlier. 

Forexlive analyst Adam Button indicated that despite high interest rates, consumer spending remains robust as the holiday season approaches. The growth in the food services sector reflects continued spending on sensitive services, indicating stable consumer demand for Q4.

Stocks to Watch

• Public filings show that NVIDIA Corporation(NVDA.US) holds approximately 7.72 million shares of digital infrastructure solutions developer Applied Digital, valued at roughly US$63.66 million, representing about 3% of Applied Digital.
• Tesla Motors, Inc.(TSLA.US)'s SpaceX plans to launch a financing round in December, selling shares of its existing business at about US$135 each. This move is expected to raise SpaceX's valuation above US$250 billion, solidifying its leadership in the private aerospace sector globally. SpaceX's valuation has grown from US$125 billion in 2022 to around US$210 billion presently.
• The FTC is reportedly preparing to investigate Microsoft Corporation(MSFT.US) for anti-competitive behaviour in its cloud computing business, examining allegations that Microsoft abused its market power in productivity software by imposing punitive licensing terms to prevent customers from moving data from Azure to competing platforms. The strategies under review include significantly increased subscription fees for departing users, high exit fees, and making Office 365 incompatible with competitor clouds.
• Sources revealed that General Motors Company(GM.US) plans to cut about 1,000 salaried employees globally as part of business streamlining, mainly affecting North American staff.
• Domino's Pizza, Inc.(DPZ.US) shares rose following reports of Warren Buffett acquiring 1.28 million shares in the third quarter.
• Applied Materials, Inc.(AMAT.US) provided lower-than-expected guidance for first-quarter revenue.
• Alibaba Group Holding Ltd. Sponsored ADR(BABA.US) reported adjusted net income of CNY36.52 billion for the second quarter, exceeding market estimates.
• JD.com, Inc. Sponsored ADR Class A(JD.US)'s solid third-quarter results prompted Bank of America to raise its target price.
• NetEase, Inc. Sponsored ADR(NTES.US) received an upgraded target price from UBS following earnings, citing a recovery in its gaming business.