PARIS (Reuters) – The New York Stock Exchange opened higher on Wednesday as the latest U.S. inflation data bolstered investor optimism that the Federal Reserve’s monetary tightening cycle would end soon.
In early trading, the Dow Jones index gained 260.86 points, or 0.76%, to 34,522.28 points.
The Standard & Poor’s 500 (+0.86%) and the Nasdaq Composite (+1.17%) are moving to their highest since April 2022, at 4,477.57 and 13,921.085 points respectively.
Consumer prices recorded their weakest annual increase in more than two years in June, while core inflation, i.e. excluding food and energy, slowed to 4.8%, against 5.3 % in May and 5% for the Reuters consensus.
After an interest rate hike expected in two weeks, markets now see only a 26% chance that the US central bank will hike rates by a quarter point in November, down from 34% before the data was released.
“Inflation is better than expected, both headline and underlying. The policy implications are clear, the Fed is at or near the end of this rate hike cycle,” Art Hogan said. , strategist at B Riley Wealth.
US inflation data is welcomed in the Treasuries market, with benchmark yields deepening their losses. That of two-year securities fell by 13 basis points to 4.76%.
The S&P index of technology stocks rose 1.15% and among the heavyweights in the sector, Microsoft, Amazon and Tesla rose from 1.20% to 1.52%.
(Laetitia Volga, editing by Kate Entringer)
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