PARIS (Reuters) – American stock markets opened lower on Tuesday after the publication of a stronger-than-expected CPI inflation indicator, which raised fears that the Federal Reserve would keep its rates at a restrictive level for longer.
In early trading, the Dow Jones index lost 307.69 points, or 0.79% to 38,489.69 points and the broader Standard & Poor’s 500 fell 1.31% to 4,955.82 points. The Nasdaq Composite lost 2.14% or 340.54 points, to 15,602.005.
CPI inflation in the United States accelerated in January compared to December, with the underlying indicator increasing by 0.4% in January compared to 0.3% in December.
In the short term, volatility in rates could be difficult for stocks to digest.
However, “the message is not negative for risky assets. Disinflation is not a smooth process and if inflation remains higher than expected, it is for positive macroeconomic reasons: growth and demand which should continue to support the results of large and small caps”, notes Florian Ielpo, head of macroeconomic research at Lombard Odier AM.
In terms of values, Marriott International lost 3.82% after announcing on Tuesday that it was forecasting a profit for this year lower than Wall Street’s expectations, while travel demand in the United States is normalizing since the post-pandemic peak.
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(Written by Corentin Chappron, edited by Kate Entringer)
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