U.S. Stocks Face Pressure Amid Weaker Economic Data

U.S. stocks experienced a slight downturn on Thursday as investors analyzed a series of weaker economic indicators, suggesting that the Federal Reserve's rate hikes were starting to take effect. The Dow Jones Industrial Average (DJIA) dropped by 126 points, or 0.4%, nearing 34,820. Similarly, the S&P 500 and Nasdaq Composite Index both saw minor declines of less than 0.1%. After a strong rally in November, which saw the Nasdaq exit correction territory, it seemed that the market was headed for a temporary pause. Traders placed particular emphasis on incoming economic data, the deflation concerns expressed by Walmart Inc.'s CEO, and speeches by Federal Reserve officials.

Cautious Approach to Monetary Policy

During a CNBC interview on Thursday, Cleveland Fed President Loretta Mester stated that easing monetary policy was not currently being considered. Her remarks indicated a preference for maintaining the status quo in light of the prevailing economic conditions. Meanwhile, the 10-year Treasury yield stood at around 4.44% on Thursday, down from its 16-year high of approximately 5% in October. This decline signaled a potential decrease in borrowing costs.