US stocks sank on Friday, recording steep weekly losses as investors absorbed Chair Jerome Powell’s signal that the Federal Reserve won’t hurry to make interest-rate cuts.

The S&P 500 (^GSPC) dropped 1.3%, while the Dow Jones Industrial Average (^DJI) slid 0.7%. The tech-heavy Nasdaq Composite (^IXIC) led declines, falling 2.2%.

Powell’s hawkish comments are casting a pall on markets as the initial optimism for President-elect Donald Trump’s policies starts to wear off. The S&P has already reversed one-third of its post-election rally, and the Nasdaq logged a weekly loss of over 3%.

Retail sales data released on Friday reflected continued resilience in the American consumer, a sign of the economic strength Powell suggested would allow the Fed to take its time. October sales rose 0.4% month on month, versus 0.3% expected, including a revision higher for September’s reading to 0.8% from 0.4%.

Wall Street is back to puzzling over the Fed’s path next year, a question already muddied by this week’s inflation prints. As of Friday morning, traders are pricing in 62% odds of a rate cut at its December policy meeting, compared with 72% the day before, per CME FedWatch tool. Bets on a January easing stand at 74%, versus the previous 81%.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

At the same time, investors kept a watchful eye on Trump’s preparations for power, after vaccine stocks fell amid reports Robert F. Kennedy Jr will be named top health official. JPMorgan Chase (JPM) CEO Jamie Dimon made it clear Thursday he won’t be joining the new president’s team.

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