(CercleFinance.com) – American stock indices suffered heavy declines this Wednesday, weighed down by a report on inflation published before the opening, which showed the persistence of inflationary tensions likely to ward off the prospect of a decline rate by the Fed.
Thus, the Dow Jones ended the session with a loss of 1.1% to 38,461, while the S&P500 dropped more than 0.9% to just under 5,161 and the Nasdaq Composite dropped more than 0.8 % at 16,170.
According to the Department of Labor, the American consumer price index increased by 3.5% in March on an annual basis, a rate up 0.3 points compared to that of February, and still by 3 .8% in underlying data.
‘Inflationary pressure remains high in the United States’, noted Commerzbank, also stressing that ‘once again, the prices of services in particular have increased, reflecting the rise in wage costs’.
‘Data suggests that the Federal Reserve will remain on the sidelines for the moment and postpone the first rate cut beyond the middle of the year, especially as the economy continues to grow strongly,’ the German bank continued .
In stock news, Delta Airlines fell 2.3% despite publishing profits and revenues at the top of the airline’s forecast ranges for the first three months of the year.
Macy’s gained 2.5%, following an agreement with Arkhouse providing for the withdrawal of the appointments requested by the latter to its board of directors, an agreement allowing in particular CEO Tony Spring to take over as chairman of the board.
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