PARIS (Reuters) – Two of the three main indices on the New York Stock Exchange opened lower on Wednesday after a stronger-than-expected rebound in U.S. core consumer prices in August, dampening expectations for the U.S. central bank to ease monetary policy.

In early trading, the Dow Jones index lost 0.68% to 40,542.36 points, and the broader Standard & Poor’s 500 fell 0.12% to 5,489.05 points.

The Nasdaq Composite gained 0.24% to 17,069.57 points, supported by the new technologies sector (+0.73%) and that of semiconductors (+0.84%) thanks to cheap purchases.

An hour before Wall Street opened, the US Department of Labor reported that the country’s core consumer price index rose 0.3% in August, compared with a consensus of +0.2%. However, it was in line with expectations over the year, posting a 3.2% increase, as in July.

Immediately after the release of the indicator, the dollar rose again, gaining 0.1% to 101.79 points against a basket of benchmark currencies, while the yield on ten-year Treasuries rose 4.3 basis points to 3.6872%, reflecting investors’ fears of persistent inflation.

The US Federal Reserve (Fed) meets on September 17 and 18 and a first cut in its key rates is expected at that time, with two other cuts planned during the year, according to a Reuters survey.

The market is concerned that the strength of core inflation, even though headline inflation has decelerated to 2.5% over a year, will undermine expectations of the path of rates, particularly the scenario of a half-point drop in borrowing costs this month.

“The slightly higher core inflation figure means a 50 basis point cut is unlikely. The Fed could start cutting rates in the same way it did with hikes: 25 basis points at first, then have the flexibility to increase the amount if needed,” writes Brian Jacobsen, chief economist at Annex Wealth Management.

Furthermore, a certain caution prevails after the televised debate between the two candidates for the American presidential election on November 5, several essential themes for the markets, such as customs duties, regulations or taxes, having not been addressed in depth.

In terms of values, the Trump Media & Technology Group share price fell by 16.43% after the televised debate between the two candidates for the American presidential election.

Gamestop fell 11.25% after reporting revenue for the quarter ended August 3 that fell short of expectations.

Crypto asset groups Coinbase Global (-3.82%), Microstrategy (-3.77%) and Riot Platforms (-2.96%) are in the red in the wake of bitcoin’s 1.6% decline.

(Written by Claude Chendjou, edited by Kate Entringer)

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