PARIS (Reuters) – The New York Stock Exchange opened higher on Wednesday, driven by the easing of inflationary pressures in light of monthly consumer price figures in the United States which call for a reduction in interest rates.
In early trading, the Dow Jones index gained 183.78 points, or 0.46%, to 39,741.89 points and the broader Standard & Poor’s 500 rose 0.50% to 5,273.16 points after broke his record from the opening.
The Nasdaq Composite takes 0.56%, or 92.18 points, to 16,603.36.
An hour before Wall Street opened, the Labor Department indicated that consumer prices (CPI) in the United States had increased less quickly than expected in April, by 0.3% over one month. Over one year, they increased by 3.4%, after a gain of 3.5% in March. Excluding volatile items, the CPI index also slowed to 0.3% month-on-month and 3.6% year-on-year.
This statistic is likely to reassure markets which are forecasting a first cut in key rates from the American Federal Reserve (Fed) in September. Especially since the day before, Jerome Powell, the president of the Fed, himself stressed that he still expected a decline in inflationary pressures this year, even if he was less confident than before.
“If there were concerns that the Fed is not going to cut (its key rates) at all, this statistic alleviates some of those concerns,” notes Jason Pride, head of investment strategy and research. at Glenmede.
After the release of the CPI, Fed policy rate futures showed that the probability of a September borrowing cost cut increased from 69% to 73%.
On the bond market, the yield on ten-year Treasuries fell 7.2 basis points, to 4.3691%.
This benefits growth stocks, notably the semiconductor index (+0.82%) and the new technologies index (+0.76%).
Boeing fell 0.91% as the US Department of Justice announced Tuesday evening that the aircraft manufacturer had not respected the agreement reached in 2021 after the deadly 737 MAX accidents in 2018 and 2019.
The “meme stocks” are neglected after their recent rally, GameStop yielding 18.56%, while AMC Entertainment plunges 15.25%.
(Written by Claude Chendjou, edited by Bertrand Boucey)
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