The New York Stock Exchange finished overall in the red on Wednesday, with the exception of the Nasdaq index which remained stable, the American square having been undermined by higher American inflation than anticipated.
The Dow Jones dropped 0.50% and the enlarged S&P 500 index lost 0.27%. Only the NASDAQ index, with technological coloring, closed close to balance (+0.03%).
The publication of the consumer price index (ICC) in the United States at the start of the day “Was a negative surprise since he has exceeded all estimates”underlines with AFP Angelo Kourkafas, by Edward Jones.
From January 2024 to January 2025, consumer prices increased by 3% (after 2.9% in annual rate in December), inflation accelerating for the fourth month in a row, according to the Department of Labor.
Analysts expected a slowdown in the CPI index at +2.8% over a year in January, according to the consensus compiled by Marketwatch.
They also bet on a slowdown in so-called underlying inflation, excluding volatile prices for food and energy, but it also increased, amounting to +3.3% over a year.
“The message is clear: prices continue to increase (and) there is no reason why the American federal reserve (Fed) is in a hurry to reduce its rates”Selon Angelo Kourkafas.
The role of the monetary institution is to fix the guiding rates at a level which makes it possible to curb inflation, while ensuring full employment.
However, the prices of January are likely to consolidate it in the idea that it should not quickly reduce its main guiding rates, in the absence of signs of low labor market and breath of consumption in the states- United.
The financial markets now believe that a decrease is unlikely before the end of the summer, at the earliest, according to the monitoring tool of the CME group, Fedwatch.
Donald Trump, who recovered the purchasing power at the heart of his campaign, however judged on Wednesday that interest rates were to lower in order to compensate for inflation potentially induced by the increase in customs duties he wants impose on products imported into the United States.
In this context, the yield of American state loans was handed frankly: around 9:40 p.m. GMT, the American 10 years stood at 4.62%, against 4.54 the day before at the end. The two -year yield went from 4.28% to 4.35%.
The session was also led by recent developments around the war in Ukraine.
Donald Trump and Vladimir Putin agreed on Wednesday to launch negotiations “Immediate” To put an end to the conflict in Ukraine, during a spectacular exchange which rebatted the cards after three years of war.
“It’s a positive catalyst” For the market because if peace in Ukraine “Would not have a significant impact on the American economy”that “Would partially reduce the ambient uncertainty”judge Angelo Kourkafas.
In addition, the return of Russian oil and gas to the market “Can help contain inflation in the United States” Because a more abundant offer causes a drop in prices, according to the analyst.
Elsewhere at the side, the CVS Health pharmacies network flew by 14.95% after announcing a turnover and a profit in the fourth quarter above expectations.
The American group of oil and chevron gas dropped 1.61% after sharing its intention to reduce its workforce by 15% to 20% by the end of 2026, as part of a cost reduction plan from two to Three billion dollars announced in 2024.
Despite results above expectations, the Biogen laboratory lost 4.28% due to forecasts for the current year below analysts.
The American airline at low cost Spirit Airlines, which filed for bankruptcy in November, plummeted more than 20% after refusing a new merger offer proposed by its competitor Frontier Airlines.
(tagstotranslate) American