(Reuters) – The New York Stock Exchange opened lower as the release of a key gauge of U.S. inflation bolstered expectations of another interest rate hike from the Federal Reserve at its March meeting. next week.

Amazon’s warning about the outlook for its cloud division is also weighing on the market.

In early trading, the Dow Jones index lost 61.33 points, or 0.18%, to 33,764.83 points and the broader Standard & Poor’s 500 fell 0.13% to 4,130.02 points.

The Nasdaq Composite lost 0.14%, or 16.62 points, to 12,125.62.

The personal consumption expenditure (PCE) index in the United States, the Fed’s preferred measure of inflation, rose 4.2% in March year on year, compared to a rise of 5% the previous month, but its basic version, called “core”, which excludes food and energy, remained unchanged at 4.6%, while economists forecast 4.5%.

These data show that underlying inflation remains robust and support the scenario of a 25 basis point hike in Federal Reserve interest rates in May.

Wall Street enters its final session of the week also impacted by Amazon’s warning of a slowdown in its Amazon Web Services (AWS) division, despite its better-than-expected quarterly results, as well as disappointing forecasts from owner Snap. the Snapchat messaging service, and the Pinterest image sharing platform.

The Amazon.com action fell 2.8% at the opening, while Snap lost 19.2% and Pinterest 13.7%.

Intel, which on Thursday said it expected an improvement of more than 40% in its gross margins in the second half, gained 7.4%.

The University of Michigan’s monthly survey for April, which analysts expect unchanged from March, is due at 14:00 GMT.

(Written by Diana Mandia)

Copyright © 2023 Thomson Reuters