U.S. stocks experienced a sharp decline on Friday, marking their worst loss since Election Day. The S&P 500 closed down 1.3%, while the Nasdaq fell by 2.2%. The Dow Jones Industrial Average dropped 300 points, and the Russell Index fell 1.42%. The downturn was driven by Federal Reserve Chair Jerome Powell's comments urging caution on further interest rate cuts, which dampened investor sentiment. This comes after a significant post-election rally fueled by Donald Trump's victory and an initial interest rate cut by the Federal Reserve. Additionally, semiconductor stocks underperformed, contributing to the market's decline. Gold also faced its biggest weekly fall in three years as expectations for further rate cuts eased.