Stocks tumbled on Thursday as chances of a December rate cut appeared to fade.

As of 2:42 p.m. ET, the S&P 500 was down more than 1.6%, the Nasdaq Composite was trading lower by 2.3%, and the Russell 2000 dipped 2.5%.

The Dow Jones Industrial Average also fell by about 700 points after hitting a record high on Wednesday.

Traders are currently betting on a less than 50% chance of a rate cut at the Fed’s next meeting, down from more than 90% just two weeks ago, before Federal Reserve Chair Jerome Powell surprised markets on Oct. 29 by saying that “a further reduction in the policy rate at the December meeting is not a foregone conclusion.”

In recent days, Fed officials have sounded split regarding interest in another rate reduction.

Fed governors Lisa Cook and Philip Jefferson, as wel

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