* The Dow Jones drops 0.26%, the S&P-500 loses 0.34% and the Nasdaq falls 0.30%
by Stephen Culp
NEW YORK, April 12 (Reuters) – The New York Stock Exchange ended lower on Tuesday, after posting gains during the session, as the prospect of an imminent tightening of monetary policy by the Federal Reserve (Fed) again weighed on high growth stocks and benefited bond yields.
The Dow Jones index fell 0.26%, or 87.72 points, to 34,220.36 points.
The broader S&P-500 lost 15.08 points, or 0.34%, to 4,397.45 points.
The Nasdaq Composite fell by 40.38 points (0.30%) to 13,371.57 points.
In the wake of the release of economic data in line with expectations, the three main Wall Street indices recorded solid gains at the start of the session, benefiting from the easing of bond yields, before their rise reversed the trend. tendency.
This shift took place in the wake of comments by a Fed official, Lael Brainard, who reiterated the need for the central bank to “promptly” fight against the rise in inflation, which has reached an unprecedented peak. in several decades.
“Comments from Fed officials are more conservative than markets anticipated,” said Paul Nolte, portfolio manager at Kingsview Asset Management, Chicago.
Consumer prices in the United States rose 1.2% in March and their annual increase reached 8.5%, the highest for more than 40 years, Labor Department data released today show .
Among analysts, opinions differ on the persistence of inflation over the long term. Some believe that the inflationary wave could be waning, others are not so sure.
“Inflation will last for a while,” said Peter Cardillo, chief economist at Spartan Capital Securities. “We could see a downturn during the summer months, provided there is a drop in agricultural and energy prices”.
These data on consumer prices have fueled the hypothesis of an imminent further hike in Federal Reserve interest rates. “She can’t sit idly by,” said Paul Nolte.
The energy sector was the best performer among the major sectors of the S&P-500, with a gain of 1.7%, benefiting from the rise in oil prices.
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(French version Jean Terzian)