by Carolina Mandl, Amruta Khandekar and Ankika Biswas

(Reuters) – The New York Stock Exchange ended lower on Friday, as the announcement of stronger than expected growth in producer prices in January in the United States broke its momentum by dashing hopes of a rapid decline interest rates from the Federal Reserve.

The Dow Jones index fell 0.39%, or 149.48 points, to 38,623.64 points.

The broader S&P-500 lost 24.18 points, or 0.49%, to 5,005.15 points.

The Nasdaq Composite fell 132.38 points (0.83%) to 15,775.65 points.

Over the week, the Dow lost 0.11%, the S&P-500 0.42% and the Nasdaq 1.34%. This week thus puts an end to five consecutive weekly progressions for these three indices. The S&P has gained more than 5% since the start of the year and crossed the 5,000 point threshold for the first time.

The stronger-than-expected increase in producer prices in January should reassure Fed officials in their wait-and-see approach while the consumer price figures published at the start of the week had already shown a reacceleration of inflation in the UNITED STATES.

In response, US Treasury yields rose as more and more market participants judged that the Fed could now wait beyond June before easing its monetary policy.

On the equity market, most large caps suffered, including a 2.21% decline in Meta Platforms.

In corporate earnings news, Applied Materials gained 6.4% as the semiconductor equipment supplier reported a better-than-expected second-quarter revenue forecast due to strong demand for chips used in the field of artificial intelligence (AI).

Roku, a streaming television specialist, on the other hand, plunged 23.8% due to a forecast of greater loss in the first quarter while the cryptocurrency exchange platform Coinbase Global jumped 8.84% to following its first quarterly profit since 2021.

( Bertrand Boucey)

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