Powell’s comments drag investors into the ground.

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. As you see? You can subscribe. Here.

The rally ended after the election.
US markets fell on Thursday and are poised to end the week’s decline. In particular, the so-called “Trump trade” is coming to an end. Europe’s regional Stoxx 600 climbed 1.08%, snapping a two-day losing streak. Burberry shares rose 18.7 percent after the British luxury company announced plans to overhaul the brand.

No rush to cut.
The US Federal Reserve does not need to be “in a rush to cut rates”, Fed Chair Jerome Powell said on Thursday. Powell noted that the economy is still strong, and that October’s disappointing jobs report was largely due to hurricanes and labor strikes. Powell’s slightly dovish tone dampened market enthusiasm and dampened traders’ expectations for a December rate cut.

Wholesale prices rose slightly.
The Bureau of Labor Statistics reported that the U.S. producer price index rose 0.2 percent in October. Although this was higher than the 0.1% increase in September, the figure was in line with the Dow Jones consensus forecast. Wholesale inflation was 2.4 percent for the year. Core PPI, which excludes food and energy prices, came in at 0.3%, in line with expectations.

Disney Plus subscribers
Disney Shares rose 6.2 percent after reporting fiscal fourth-quarter results that beat Wall Street expectations. The media giant’s net income grew 74.2% year-on-year. That’s partly thanks to Disney+, its streaming business, which finally turned profitable and added subscribers during the recently ended quarter.

[PRO] Big hedging on betting and China
Michael Berry, the investor who called the 2007 subprime mortgage crisis, is betting on China. Scion Asset Management – ​​a hedge fund that Burry manages – has massively increased its stake in three Chinese internet companies. At the same time, Barry seems to be hedging against those bets.

After enjoying the post-election rally, investors are turning their attention back to issues like inflation and interest rates.

Consumer and wholesale price increases in October, while coming in as expected, ticked up from last month, indicating there are still pockets of warmth in the economy.

Yet, the process of disinflation – in which the rate of inflation slows – is not a linear one. A month of rising prices does not mean that inflation is back.

As Fed Chair Jerome Powell noted, getting inflation to the central bank’s “long-term target of two percent” could be a “hard road at times.” And just as disinflation does not travel in a straight line, neither does interest rate acceleration. Powell added that the Fed doesn’t need to be “in a rush to cut rates” because of “the strength we’re seeing in the economy right now.”

The uncertainty following Powell’s comments dramatically reduced traders’ bet for a December rate cut. According to the CME FedWatch tool, the odds of a 25-basis-point cut in rates at the Fed’s December meeting are now 58.6%, up from 82.5% on the first day.

BlackRock’s Rick Rieder thinks the Fed will still cut rates by 25 basis points in December. However, as far as the cuts are concerned next year, “the speed at which that happens and whether they actually need it really becomes a question mark,” Ryder told CNBC.

Those concerns overshadowed the post-election euphoria, sending stocks tumbling. gave S&P 500 0.6 percent, Dow Jones Industrial Average fell 0.47 percent and Nasdaq Composite retreated 0.64 percent. All the indices are on track to finish off the lows for the week.

The US economy is widely expected to get a soft landing. For investors who were riding high in the post-election rally and are now coming down, the landing certainly feels like a bumpy ride.

– CNBC’s Jeff Cox, Brian Evans and Sarah Mann contributed to this report.