PARIS (Reuters) – The New York Stock Exchange opened higher on Tuesday, driven by the monthly consumer price statistics (CPI) in the United States which showed a more marked slowdown in inflation than expected, which strengthens the scenario of the end of the rise in rates by the American Federal Reserve (Fed).

In early trading, the Dow Jones index gained 333.53 points, or 0.97%, to 34,671.4 points and the broader Standard & Poor’s 500 rose 1.40% to 4,473.63 points.

The Nasdaq Composite gained 1.77%, or 243.178 points, to 14,010.92.

An hour before Wall Street opened, the Labor Department announced that the CPI index posted zero growth (0.0%) last month after increasing 0.4% in September, while on a annual basis the slowdown stood at +3.2% after +3.7% in September. The core CPI, which excludes energy and food products, also shows a deceleration to 0.2% month-on-month and 4.0% year-on-year.

These lower than expected data caused a decline in the dollar on the financial markets, which fell by 0.94% against a basket of reference currencies, while the yields on ten-year Treasuries and each plunged by almost 20 points. basis, at 4.4414% and 4.8339% respectively.

“We are pleased to see that the headline CPI and the core CPI are lower than expected. This tells us that the Fed is done (with raising rates), that they have nothing more to do here,” commented Thomas Hayes, president of Great Hill Capital.

Jerome Powell, the president of the Fed, nevertheless suggested last week that the current monetary tightening was perhaps not over. Speeches from the vice president of the American central bank responsible for supervision, Michael Barr, from the president of the Cleveland Fed, Loretta Mester, as well as from the head of the Chicago branch, Austan Goolsbee, are now expected later of the day.

In the meantime, on Wall Street, all major sectors of the S&P-500 are in the green, with real estate posting the best performance with a gain of 4.04%.

The technology compartment, also sensitive to fluctuations in interest rates, advanced 1.28%. Apple, Microsoft, Alphabet, Nvidia and Tesla rose from 0.91% to 3.69%. Microsoft and Google have also announced that they do not intend to challenge their status as “gatekeepers” under the “Digital Markets Act” (DMA) regulation on digital markets in the Union. European.

Snap jumped 8.36% after news that Amazon (+2.35%) will allow users of the social network in the United States to purchase products directly from the Snapchat application.

In financial publications, Home Depot climbed 4.99%, the specialist in DIY stores having reported, for the third quarter, a profit better than expected and a less marked drop in sales on a comparable basis. than anticipated.

Fisker falls 17.51% as the electric vehicle startup lowered its production forecast for this year.

(Writing by Claude Chendjou, edited by Kate Entringer)

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