by Noel Randewich and Johann M Cherian
NEW YORK (Reuters) – The New York Stock Exchange ended in mixed order on Tuesday, with only the Nasdaq finishing in the green, after the release of data on consumer prices in the United States which fueled the idea that the US Federal Reserve (Fed) will continue to raise interest rates in the coming months.
The Dow Jones Industrial Average fell 0.46%, or 164.41 points, to 34,089.40 points.
The broader S&P-500 fell 0.03% to 4,136.17 points.
The Nasdaq Composite advanced for its part by 0.57% to 11,960.15 points.
A report from the US Department of Labor shows that consumer prices in the United States accelerated in January, driven by rising rents, suggesting that the Fed will continue to raise, moderately, its rate.
Markets are pricing in at least two more rate hikes of 25 basis points this year, with a peak of 5.28% expected in July.
Remarks by two US central bank officials fueled investor concerns. Dallas Fed President Lorie Logan said the institution should prioritize fighting inflation rather than worrying about risks to economic growth.
Wall Street took advantage of the renewed interest in high-growth stocks to start the year on a positive footing, after the shocks that occurred in 2022 against the backdrop of the Fed’s aggressive monetary policy.
But that trend petered out last week, with the release of data illustrating the strength of the US labor market and conservative comments from Fed officials.
Investors are awaiting the release of US retail sales data from last month on Wednesday to gauge consumer spending amid worries of an economic slowdown.
The majority of the main sectors of the S&P-500 ended the session in the red, in particular real estate.
On the value side, Tesla recorded an increase of nearly 8% and confirmed its rebound since the start of the year, with an increase of more than 60%, after losing two-thirds of its value in 2022.
Boeing saw its stock jump to a peak in more than a year after Air India announced an agreement to procure 220 aircraft from the US aircraft manufacturer.
Coca-Cola declined 1.7% despite a strong forecast for its annual revenue.
(French version Jean Terzian)
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