PARIS (Reuters) – The New York Stock Exchange opened on a hesitant note on Thursday, with investors digesting the implications of slightly higher-than-expected inflation.
In early trading, the Dow Jones index remained at 33,821.95 points and the broader Standard & Poor’s 500 was stable at 4,378.00 points. The Nasdaq Composite is standing still, at 13,661.143 points.
Inflation in the United States surprised on the rise, increasing by 3.7% in September against 3.6% expected by the consensus.
The indicator revived market fears, even though underlying inflation was in line with consensus, and jobless claims for the week ending October 7 surprised by a slight decline. In fact, the acceleration in the cost of rent and leisure goods and services casts doubt on the effectiveness of the Federal Reserve’s measures, these elements being historically sensitive to rate levels. The indicator does not call into question the central scenario of the markets, which continue to foresee a pause in rate increases in November and December, but could revive bond volatility, which would weigh on stocks.
In stocks, Microsoft lost 0.8% after announcing on Wednesday that the US Internal Revenue Service (IRS) was demanding an additional tax payment of $28.9 billion, plus penalties and interest for fiscal years ranging from 2004 to 2013.
Ford Motor fell 3.2%, the United Auto Workers union having extended its strike Wednesday to the Ford factory in Kentucky, the group’s largest.
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(Written by Corentin Chappron, edited by Blandine Hénault)
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