U.S. stock indices are declining today. The day before, the Fed unexpectedly raised its key rate by 50 basis points, and central bank governors revised upward their forecast for the rate level for the end of 2023. Also, during a traditional press conference, Fed Chairman Jerome Powell repeatedly hinted that the Fed does not intend to begin cutting rates until at least early 2024. 

“He zealously denied the idea that the Fed might lower rates next year. Instead, he noted that the Fed wants to take a long pause and pointed to the risks of premature monetary policy easing,” Investec’s Ellie Henderson wrote.

On Thursday, the European Central Bank and the Bank of England followed the example of the Fed and also raised their rates by 50 bps. Amid all the developments, the S&P 500 Index and major European indices started to decline. 

U.S. stock indices today

Meanwhile, U.S. retail sales in November fell 0.6% versus the previous month, a record pace since the beginning of the year. Analysts polled by Bloomberg expected a decline of 0.2%, while Trading Economics forecast a decline of 0.1%. Retail sales excluding automobiles declined 0.2% last month after rising 1.2% in October, and the figure excluding cars and fuel was down 0.2% from a 0.8% increase a month earlier.

The number of initial claims for unemployment benefits in the U.S. last week unexpectedly fell by 20,000 to 211,000, according to a report from the U.S. Labor Department. Experts on average expected the indicator to remain around 230,000.

Industrial production in the U.S. in November fell by 0.2% compared to the previous month, while analysts expected growth of 0.1%. In annual terms, industrial production increased by 2.5%.

The Dow Jones Industrial Average index fell by 546.29 points (1.61%) to 3,420.06 points.

American Express Co (NYSE:AXP). is leading the decline among the index components, falling 3.5%. Of the 30 companies included in calculating the indicator, only shares of Verizon (NYSE:VZ) Communications are trading on the plus side, rising 1.9%.

Standard & Poor’s 500 declined 66.40 points (1.66%) to 3,928.92 points.

The Nasdaq Composite fell 213.72 points (1.91%) to 10957.17.

Earlier we reported that Apple plans to take production of iPhones out of China.