US and European stock markets retreated on Friday following a rally and records triggered by a jumbo US interest rate cut this week.
In New York, the Dow and the broad-based S&P500 index opened in the red following records the previous day in the wake of the Federal Reserve’s 50-basis-point rate reduction and pledge of further cuts as inflation cools.
“Some profit-taking as we end the week is to be expected” following the rallies, said Kathleen Brooks, research director at trading platform XTB.
There had been fears the move could signal officials were worried about the economy and were behind the curve in easing policy.
But data Thursday showing jobless claims at their lowest since May suggested the United States was heading for a soft landing, rather than recession.
Asia’s main stock markets closed out the week mostly higher after Thursday’s advances.
The yen reversed earlier gains after the Bank …