The S&P 500 and Nasdaq experienced their largest one-day losses in two weeks, leading to a lower close for Wall Street's main indexes on Friday. Concerns about the Federal Reserve's cautious approach to interest-rate cuts, as expressed by Chair Jerome Powell, contributed to the decline.

Powell cited ongoing economic growth, a strong job market, and inflation surpassing the central bank's 2% target as reasons for a gradual pace in future rate adjustments. Traders have adjusted their expectations for the Fed's December meeting, now estimating a roughly 42% chance of no rate change, a significant increase from about 14% a month earlier.

Recent economic data, including a slight increase in U.S. retail sales for October and a rebound in import prices, along with persistent inflation trends observed earlier in the week, further supported this sentiment.