Market Overview

Investing.com– The S&P 500 fell Thursday as Federal Reserve Chair Jerome Powell signaled that the Fed doesn't need to be in a hurry to cut rates and could take a careful approach to monetary policy easing.

At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average fell 207 points, or 0.5%, while the S&P 500 index dropped 0.6% and the NASDAQ Composite fell 0.6%.

Powell Signals Careful Approach to Rate Cuts

Federal Reserve Chairman Jerome Powell said Thursday that the economy isn't signaling a need for speed on rate cuts as the recent strength allows the Fed to take a careful approach to monetary policy decisions.

> "The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully," Powell said in a speech Thursday.

The rate-sensitive 2-year Treasury yield jumped 6 basis points to 4.34%.

Bets on a December rate cut fell to 60% from 80% a day earlier, according to Investing.com's Fed Rate Monitor Tool.

Fresh Signs of Firmer Inflation Emerge

Data released earlier Thursday showed that US producer prices increased at a faster annual rate than anticipated in October, rising by 2.4% compared to a year ago, up from 1.9% in September and above economists' estimates of 2.3%.

For the month, the measure came in at 0.2%, accelerating from an upwardly-adjusted 0.1% in September and in line with projections.

Excluding more volatile items like food and fuel, the reading came in at 0.3% month-on-month, in line with estimates. Year-over-year, the so-called "core" index moved up by 3.1%, compared to expectations of 3.0%.

>This follows Wednesday's consumer prices, as the headline rate rose slightly year-on-year, while core inflation remained pinned above 3%.

>“The PPI report broadly backs up CPI in terms of a slowing in progress on underlying inflationary pressures. For now, though, the outlook for core PCE is soft enough to keep the Fed on track for another rate cut in December," said Kyle Chapman, FX Markets Analyst at Ballinger Group.

Disney's Streaming Business Shines in Q4, Cisco Slips on Tepid Outlook

Walt Disney (NYSE:DIS) stock jumped 6% after the entertainment giant reported better-than-anticipated income and revenue in the fourth quarter, bolstered in particular by strength at its key streaming business, which helped power a 14% jump in revenue.

Additionally, Cisco Systems (NASDAQ:CSCO) stock slipped 2% after the networking equipment manufacturer unveiled a tepid full-year outlook, while reporting a fourth straight quarter of declining revenue.

Advanced Micro Devices (NASDAQ:AMD) stock closed just below the flatline after the chipmaker said it will lay off 4% of its global staff, or around 1,000 positions.

Elsewhere, Tapestry (NYSE:TPR) stock rose 13% while Capri (NYSE:CPRI) cut losses to rise more than 4% after the two U.S.-based luxury fashion houses called off their merger after the deal was blocked by the Federal Trade Commission.

(Peter Nurse, Ambar Warrick contributed to this article.)