Stocks plunge, VIX jumps 17%, Nasdaq erases post-Trump gains as traders reconsider Fed action: What will move markets on Friday? – Alcoa (NYSE:AA)

Risk aversion gripped Wall Street in the final trading session of the week, causing sharp declines across major indexes.

Investors were grappling with growing uncertainty over the economic impact of President Donald Trump’s policies and the Federal Reserve’s next moves.

Fed Chairman Jerome Powell’s comments the day before weighed on risk assets. Chairman Powell suggested there was no need to cut interest rates, citing the resilience of the economy, and emphasized the importance of fully completing anti-inflation measures.

Boston Fed President Susan Collins added to the uncertainty on Friday by saying she would need to see additional data before deciding on further rate cuts at the next policy meeting.

Expectations for a 25 basis point rate cut in December have fallen sharply, with the probability dropping to 59% from 82% the day before.

U.S. indexes are expected to end the week in negative territory, as optimism soared after Trump’s victory wanes. Tech stocks were hardest hit, with the Nasdaq 100 plunging 2.5%, erasing post-election gains.

Chipmakers fall flat on iShares Semiconductor ETF socks Applied Materials hit its lowest price in two months. Amat announced a disappointing outlook.

The CBOE Volatility Index (VIX) rose more than 17%, reflecting heightened market anxiety due to heightened interest rate cut uncertainty and broader economic concerns.

US Treasury yields fell slightly, indicating a flight to safe-haven bonds. The drop in yields supported the Japanese yen, ending its losing streak on the 4th.

Although the US dollar weakened, it maintained its seven-week upward trajectory, marking its longest winning streak since September 2023.

Despite falling yields and a weaker dollar, gold prices remained flat and failed to act as a hedge in turbulent trading. Meanwhile, Bitcoin BTC/USD Ignoring the risk-off mood, the stock showed surprising strength, rising 2.5% to $89,600.

Friday performance of major US indexes and ETFs

According to data from Benzinga Pro:

SPDR S&P 500 ETF Trust spy It fell 1.4% to $585.28. SPDR Dow Jones Industrial Average diamond The stock fell 0.8% to $434.08. Invesco QQQ Trust Series focuses on technology QQQ It fell 2.5% to $496.12. iShares Russell 2000 ETF I.W.M. The stock fell 1.4% to $228.75. Utilities Select Sector SPDR Fund XLU outperformed, rising 0.8%. Technology Select Sector SPDR Fund XLY It was a slow start, down 2.7%.

friday stock mover

Palantir Technologies Co., Ltd. PLTR Shares soared 8.4% on news that AI Champion will be included in the Nasdaq 100 Index. walt disney company DIS Shares rose more than 4%, accelerating the stock’s momentum after rising 6.2% on Thursday on the back of better-than-expected profits. Alcoa Co., Ltd. A.A. Shares rose more than 8% after China announced it would end export tax rebates on aluminum starting December 1.

The stocks that reacted to the earnings report are as follows.

Globant SA globdecreased by 11%. AST Space Mobile Co., Ltd. ASTSdown 13.8%, Post Holdings Co., Ltd. postdecreased by 2.8%.

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