Powell’s comments gave investors a reality check.

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. Breaking from Wall Street, Asia-Pacific stocks rose mostly on Friday. of Japan Nikki 225 rose 0.28% on news that the domestic economy expanded in the third quarter, while China’s CSI 300 fell nearly 1% on reports that China’s real estate woes have worsened.

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.

Japan’s third-quarter GDP growth
Japan’s economy grew 0.3 percent in the third quarter from a year earlier. GDP growth reversed the previous quarter’s contraction of 1.1%, and snapped two consecutive quarters of year-over-year declines. On a quarterly basis, GDP rose 0.2%, in line with estimates in a Reuters poll, but lower than the 0.5% increase in the second quarter.

China to withdraw retail sales
China’s retail sales rose 4.8 percent year-on-year in October, according to a report by the National Bureau of Statistics. That was higher than the 3.8 percent expected in a Reuters poll and up from September’s 3.2 percent growth. However, investment in real estate between January and October fell 10.3 percent from a year earlier — the steepest drop in nearly two years, according to data from Wind Information.

[PRO] Nvidia will develop the little-known Korean firm.
Nvidia’s The meteoric rise has picked up many connected chipmakers. As Nvidia moves to its next-generation AI chip, a little-known South Korean firm is becoming such a key linchpin in Nvidia’s production process that Wall Street Bank City gave the firm 40% potential growth over the next 12 months.

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. The probability of a 25 basis point rate cut at the Fed’s December meeting is now 62.6%, up from 82.5% the day before, according to the CME FedWatch tool.

of Black Rock Rick Ryder 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.