Hesitant start of the session on Wall Street, fear over inflation

PARIS (Reuters) – The New York Stock Exchange hesitated in early trading on Friday, as the larger-than-expected rise in producer prices in the United States dampened investors’ hopes of a more marked easing of this measure. inflation just days before the Federal Reserve meeting.

A few minutes after the opening, the Dow Jones index lost 24.49 points, or 0.07%, to 33,756.99 points and the Standard & Poor’s 500, wider, nibbles 0.02% to 3,964.23 points.

The Nasdaq Composite lost 0.09%, or 9.693 points, to 11,072.31.

The producer price index rose 7.4% year on year in November, reflecting a slowdown from 8.1% in October but a bigger rise than the Reuters consensus forecast at 7 .2%.

“It’s disappointing and shows we’re stuck on the inflation treadmill,” said Robert Pavlik, senior manager at Dakota Wealth.

Inflation that falls too slowly does not favor the scenario of a possible “pivot” of the central bank but rather that of a less aggressive rise in rates, which would be maintained at a high level for longer, according to observers.

Traders continue to expect a half-point rate hike at the Fed meeting next week, according to CME Group’s FedWatch.

On the eve of Fed decisions on Wednesday, all eyes will be on the monthly consumer price numbers.

On the stock market, Netflix gains 3.58% after Wells Fargo’s move to “overweight”.

Broadcom rose 3.66% after the chipmaker reported quarterly revenue that beat expectations.

In the red, Lululemon fell 9.29% after saying it expected results below expectations for the last three months of the year.

(Laetitia Volga, editing by Kate Entringer)

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