The stock market's post-Trump-election rally has seen a significant downturn. More than half of the gains have been wiped out, and the turning point came on Thursday when Fed Chair Powell indicated that the central bank will take its time in cutting rates. This, combined with strong economic data, has led investors to question the necessity of a December rate cut.

Impact on Major US Indexes

On Friday, major US indexes sold off sharply, with the tech-heavy Nasdaq taking the lead. The S&P 500 fell as much as 1.6% and has now given back more than half of its 4% post-election gain. The Nasdaq Composite dropped 2.7% at intraday lows. This week, the S&P 500 fell 2.2%, the Dow Jones industrial average lost 1.2%, and the Nasdaq slid 3.2%.

Rate Cut Odds and Economic Data

The odds for a 25-basis-point rate cut in December have fallen. Before Powell's address, investors were pricing in around an 80% probability, but now it is at 58%. This comes amid a promising streak of US economic data. On Friday, retail-sales data showed signs of strength, and on Thursday, jobless-claims figures came in surprisingly light. Stock investors are now grappling with the implications of Trump's policies and their potential impact on the market.

Investor Sentiment and Focus

Until now, investors had been focused on Trump's plans to cut taxes and deregulate. However, Powell's comments have given them something else to consider. Concerns have been raised about whether Trump's protectionist trade policies will drive inflation higher and potentially lead to rate hikes. Now, investors are faced with a new set of factors to evaluate.

Where US Indexes Stand

Here's where US indexes stood at the 4 p.m. closing bell on Friday. The S&P 500, Nasdaq, and Dow Jones all showed significant declines. In commodities, bonds, and crypto markets, there are also various movements and trends. Investors are closely monitoring these different asset classes to assess the overall market situation.