The MSCI All Country World Index pared its biggest weekly rally since September, the Dow Jones Industrial Average fell from an all-time high and developing-nation shares were set for the lowest in for months. The dollar rose against most major currencies, while Mexico’s peso fell toward a record low. European bonds extended their rout as Treasury trading was closed for a holiday. Copper pared its biggest gain in seven years and gold plunged with oil.

Global stocks gained $1.3 trillion this week as traders bet Trump will lower taxes, ease corporate regulations and ramp up spending to spur growth. Meanwhile, more than $1 trillion was wiped off the value of bonds as the policies are seen boosting inflation and interest rates. Federal Reserve Vice Chairman Stanley Fischer said the central bank has almost reached its goals for maximum employment and price stability, strengthening the case for a hike.
 “Let’s face it, we still have to see what Trump’s policies are going to be and who’s going to be in his cabinet,” said Matt Maley, an equity strategist at Miller Tabak & Co. LLC in New York. “People want to take a breather and digest what’s gone on this week heading into the weekend.”

Stocks

MSCI’s global gauge of stocks dropped 0.8 percent at 11:14 a.m. in New York, trimming its weekly advance to 1.3 percent.

“We’re taking a breather and beginning to think about the wider repercussions of” Trump’s win, said Witold Bahrke, a macro strategist at Nordea Investment Funds in Luxembourg. “You can say this is pro-growth and pro-equity, but it depends hugely on the concrete type of measures he takes. We are moving away from the hope phase to the delivery phase.”

 The S&P 500 Index fell 0.6 percent to 2,155.57, while still set for its best week in almost two years. The Dow Average fell after posting its first record close in three months. The Russell 2000 Index of smaller companies extended weekly rally on speculation Trump’s homeward-looking policies will favor the more domestic-focused index.

Investors are also considering what a Trump presidency means for the trajectory of interest rates. Odds for a December increase in borrowing costs have risen to 80 percent from 78 percent a week ago. Utilities, real-estate investment trusts and consumer staples — stocks that have been coveted for their high dividend payout as a source of income amid record-low bond yields — have all retreated over the past five days.

The MSCI Emerging Markets Index declined 3.2 percent, set for the lowest level since July 11. Stock gauges in Argentina, Indonesia and Brazil slumped at least 2.9 percent.

The Stoxx Europe 600 Index dropped for a second day amid a slide in construction firms, miners and drugmakers.

Bonds

European government bonds extended their selloff, with the yield on Italian 10-year securities climbing above 2 percent for the first time since September 2015. German 10-year bunds declined for a fifth day.

“We do view the election of Donald Trump as a game changer,” said Adam Donaldson, head of debt research at Sydney-based Commonwealth Bank of Australia. “The strong bias toward fiscal expansion and inflationary policy represents a stark change to the malaise of recent years. This opens theDOOR for the Fed to hike in December, but also more quickly in 2017 and 2018 than previously expected.”