Markets Slide as Fed Dims Hopes for December Rate Cut

US stock indexes fell as investors reacted to Federal Reserve Chair Jerome Powell's comments, which reduced the likelihood of a December rate cut. Powell emphasized the strength of the US economy, leading to a drop in the probability of a 25-basis-point rate cut from 80% to less than 60%. Bond yields rose, with the 2-year yield increasing by 7 basis points. Economic data, including a rise in retail sales, also influenced market expectations. Major indexes were down, with the S&P 500, Dow Jones, and Nasdaq all experiencing declines.