PARIS, Feb 11 (Reuters) – The New York Stock Exchange opened on a hesitant note on Friday amid fears of monetary tightening the day after U.S. consumer price data was released. show inflation at a 40-year peak on an annual basis.
In early trading, the Dow Jones index gained 3.79 points, or 0.01%, to 35,245.38 points but the broader Standard & Poor’s 500 fell 0.03% to 4,502.47 points.
The Nasdaq Composite lost 0.07%, or 10.19 points, to 14,175.442.
The US Department of Labor reported on Thursday that the consumer price index (CPI) rose 7.5% year on year, its fastest pace since February 1982, while so-called core inflation (“ core CPI”) rose 6.0% year-on-year, its strongest rise since August 1982.
St. Louis Federal Reserve Chairman James Bullard said he was in favor of a 1% rate hike by July.
These announcements revived the scenario of an acceleration of monetary firming. Goldman Sachs now says it expects seven 25 basis point rate hikes, down from five previously, and HSBC expects a 50 basis point hike in March followed by four quarter point hikes for the rest of the year. ‘year.
In stocks, shares of major Wall Street banks like JPMorgan Chase & Co, Goldman Sachs Group, Bank of America Corp, Wells Fargo & Co, Citigroup and Morgan Stanley fell 0.2% to 0.8% amid a downturn. flattening of the yield curve.
In fact, the yield spread between two-year US Treasuries and 10-year bonds fell for the first time since August 2020 below 40 basis points, a sign of expectations of a sharp rise in prices. US Federal Reserve rate.
Shares of digital giants, which fell 2% to 3% on Thursday, are regaining some of the lost ground, like Tesla, Apple, Alphabet and Microsoft, which are up 0.1% to 0.7%.
On the results side, the action of the American sports equipment manufacturer Under Armor fell 6.1% after a warning on its margin for the current quarter, while the Internet services group Cloudflare took 0.2%, supported by its forecasts. for this year.
(Written by Claude Chendjou, edited by Sophie Louet)