(News Bulletin 247) – The New York Stock Exchange is expected to open lower on Wednesday morning, as the stronger-than-expected rise in retail sales fueled recent doubts among investors.

Half an hour before the opening, the futures contracts on the major American indices yield between 0.3% and 0.5%, announcing a start to the session in the red.

After two consecutive months of declines, retail sales rebounded 3% in January due to a sharp rise in car and home furnishings purchases and strength in the restaurant and bar sector.

These figures imply that household consumption, which accounts for more than two-thirds of US GDP, remains strong enough to fuel economic growth.

Futures contracts remained in the red after this announcement, which reinforces in the eyes of investors the scenario of further rate hikes by the Federal Reserve in order to slow growth and reduce inflation.

After a fanfare start to the year, Wall Street seems to have had some difficulty over the past two weeks in pushing its rebound further, with the strength of the US economy seeming to militate for continued monetary tightening currently orchestrated by the Fed.

On the bond market, the yield on ten-year US Treasury bonds confirms its recovery towards 3.77%, favored by the rise in expectations of a rise in Fed rates.

Also before the opening, the New York Federal Reserve announced that its Empire State index had risen to -5.8 in February, against -32.9 in January, a figure still in negative territory but which testifies to less contraction in activity.

Investors are now awaiting the release of industrial production figures, which should have rebounded in January after several months of decline.

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