PARIS (Reuters) – The New York Stock Exchange opened lower on Thursday, with the less marked than expected drop in inflation in September in the United States amplifying doubt about the pace of monetary easing by the American Federal Reserve (Fed ).
In early trading, the Dow Jones index lost 80.97 points, or 0.19%, to 42,431.03 points and the broader Standard & Poor’s 500 fell 0.28% (-16.3 points) , at 5,775.74 points.
The Nasdaq Composite lost 0.49%, or 90.43 points, to 18,201.19.
An hour before the opening of Wall Street, the US Department of Labor indicated that the consumer price index (CPI) had decelerated in September to 2.4% year-on-year, the lowest since February 2021. This However, the slowdown is less than that anticipated by economists surveyed by Reuters. So-called “core” CPI inflation, for its part, shows a re-acceleration to 3.3% at an annual rate, after 3.2% in August.
After these statistics, the markets are now counting with a probability of 76% on a reduction of only 25 basis points in Fed rates at the end of the meeting on November 6 and 7, according to the CME Group’s FedWatch barometer. The probability of a status quo on rates is around 24%.
The new CPI data adds to other indicators, such as the employment report, published last week, which demonstrate a certain resilience of the American economy despite a Fed rate hike of 525 points. basis between 2022 and 2023.
On the bond market, the yield on ten-year US Treasury bonds is however stable, at 4.0746%, as is the dollar index (around 103 points) against a basket of reference currencies.
In addition to monetary policy, investors’ attention is also focused on quarterly corporate results, with the unofficial kickoff to be given Friday by the big Wall Street banks.
Before that, Delta Air Lines lost 2.36% after publishing a revenue forecast for the fourth quarter lower than analysts’ consensus. Domino’s Pizza fell 1.66%, as the fast food chain reported lower-than-expected like-for-like sales growth in the United States in the third quarter.
Excluding results, Tesla is down slightly (-0.51%) as the group is due to unveil its highly anticipated robot taxi project this Thursday.
GXO Logistics climbs 10.31%, a source reporting to Reuters that the logistics services provider is studying its possible sale after receiving expressions of interest.
(Writing by Claude Chendjou, edited by Kate Entringer)
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