Sat Nov 16 04:20:59 UTC 2024: ## Market Volatility Shakes Stocks After Election Rally Fades

**NEW YORK** – A week of record highs followed by sharp declines left major US stock indexes in the red Friday, ending the post-election rally. The Dow Jones Industrial Average fell 0.7%, the S&P 500 dropped 1.3%, and the Nasdaq plummeted 2.2%, marking the S&P 500 and Nasdaq’s largest weekly declines since September. The Dow finished the week down 1.2%.

The downturn follows Federal Reserve Chair Jerome Powell’s statement that the Fed is not rushing to lower interest rates, dampening investor hopes for aggressive rate cuts. Stronger-than-expected retail sales further reinforced this cautious approach. The yield on 10-year Treasuries rose to 4.5% before settling around 4.44%.

Tech stocks took a significant hit, with Amazon and Meta Platforms both falling 4%, while Nvidia and Microsoft lost 3%. Tesla bucked the trend, rising 3% after a previous day’s slump amid reports of potential changes to electric vehicle tax credits.

Elsewhere, Applied Materials dropped 9% after disappointing earnings, while Disney surged over 5% on strong results. Berkshire Hathaway’s investment moves impacted several companies; Domino’s Pizza shares retreated after Berkshire disclosed a new stake, while Ulta Beauty fell over 4% as Berkshire reduced its holdings.

Bitcoin traded above $91,000, while gold futures fell to $2,565 an ounce. Alibaba’s stock dipped despite exceeding earnings expectations, due to lower-than-anticipated revenue. Spectrum Brands also saw its shares fall after missing EPS estimates.

Warren Buffett’s Berkshire Hathaway’s significant cash increase and substantial stock sales have raised investor concerns, fueled by the high stock market capitalization-to-GDP ratio, a metric Buffett has previously cited as a warning sign of market overvaluation.

The nomination of Robert F. Kennedy Jr. to head the Department of Health and Human Services sparked declines in vaccine maker stocks due to his controversial stance on vaccines.

Finally, Palantir Technologies’ shares surged 9% after announcing its move to the Nasdaq stock exchange. Expectations for another Fed rate cut in December have also diminished.

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