by Sinéad Carew and Purvi Agarwal

(Reuters) – The New York Stock Exchange ended mixed on Wednesday, with the Dow Jones and the S&P-500 recording slight increases after unsurprising data on inflation in the United States which reinforced the prospect that the Federal Reserve American (Fed) will cut rates again next month.

The Dow Jones index gained 0.11%, or 47.21 points, to 43,958.19 points.

The broader S&P-500 gained 1.39 points, or 0.02%, to {.SPX;TRDPRC_1} points.

The Nasdaq Composite fell 50.66 points (0.26%) to 19,230.74 points.

A report from the Labor Department published today shows that the consumer price index in the United States increased in October by 2.6% at an annualized rate, in line with expectations.

According to FedWatch, traders are now betting more than 82% on a 25 basis point rate cut at the next Fed meeting in December, compared to 58.7% two days earlier.

While some U.S. central bank officials displayed caution in comments made during the day, Minneapolis Fed President Neel Kashkari told Bloomberg television that he was confident in the decline in inflation and that today’s data “confirms” this trajectory.

Noting “some relief” after the report’s release while there was “concern that the data was higher than expected,” Angelo Kourkafas, a strategist at Edward Jones, said that “nothing today is going to against the idea of ​​a rate cut” next month.

Despite everything, the president of the Dallas Fed, Lorie Logan, called for caution in the institution’s measures and her Saint Louis counterpart, Alberto Musalem, did not rule out the risk that progress in the face of inflation slows down or disappears in the “home stretch”.

The yield on the two-year U.S. Treasury note fell after the release of the consumer price report, fueling speculation of a rate cut at the next Fed meeting.

However, ten-year Treasury bonds, falling in the wake of the data, erased their losses to finally advance to 4.46%, investors focusing on the prospect that Donald Trump’s policies fuel inflation on the long-term.

Investors especially expect that Donald Trump’s return to the White House will favor businesses, especially since his Republican Party will control both houses of Congress according to projections updated during the day.

“The market has already reacted positively” to the electoral information, underlined Venu Krishna, director of market strategy in the United States for Barclays.

“But what is not fully taken into account is the uncertainty that accompanies important policy positions,” he added, saying he believes that “rates, inflation and valuations are bigger headwinds at present than in 2016″, the year of Donald Trump’s previous electoral victory.

Note this Wednesday, among the stocks, the collapse of Spirit Airline, which lost 59% after press reports according to which the airline will file for bankruptcy. Discussions are underway with creditors, the company said.

Electric vehicle maker Rivian gained 13.7% following the launch of its joint venture with Volkswagen in a deal worth more than $5 billion.

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(Written by Jean Terzian)

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