PARIS (Reuters) – The New York Stock Exchange ended lower on Friday, the publication of statistics attesting to the strength of inflation in the United States, prompting investors to anticipate an acceleration in the rate hike by the Federal Reserve.
The Dow Jones index fell -2.73%, or 880 points, to 31,392.79 points.
The broader S&P-500 lost 117.09 points, or -2.91%, to 3,900.73 points.
The Nasdaq Composite fell for its part by 414.2 points (-3.52%) to 11,340.02 points.
Over the week, the S&P lost 5.06%, the Dow 4.58%, the Nasdaq 5.60%, thus signing their worst week since the one that ended on January 21.
The US consumer price index (CPI) rose 1% in May and its year-on-year rise reached 8.6%.
These record figures and higher than expected could provide an additional argument for the Fed to raise rates by half a point next Wednesday, then in July, or even in September. And investors are more and more likely to anticipate a rise of 75 basis points in July according to CME’s FedWatch barometer.
In values, Netflix lost -5.10% after Goldman Sachs announced that it was selling.
Against the trend, Just Eat Takeaway gained 5.73% after a Bloomberg report that private equity group Apollo is among possible buyers of its US subsidiary Grubhub.
On the oil market, WTI stood at $120.61 (-0.73%) and Brent at $121.92 (-0.91%).
The dollar was up 0.93% against a basket of currencies a few minutes after the close of Wall Street, while the euro stood at 1.0516 dollars (-0.92%).
On the bond market, the ten-year paper took 11.3 basis points to settle at 3.1555%. Its five-year counterpart rose 19.2 basis points to 3.2567%.
(Nicolas Delame)