(CercleFinance.com) – The New York Stock Exchange moved lower on Thursday following the publication of much higher than expected producer price figures, which fuel fears around the evolution of Fed policy.
At the end of the morning, the Dow Jones fell 0.7% to 33,875.3 points, while the Nasdaq Composite lost 0.6% to 11,998.3 points.
Published an hour before the opening, producer prices rose more than expected in January (+0.7%) mainly due to a marked rebound in energy costs.
These figures, which suggest that inflation is still very present in the United States, dispel the prospect of a rate cut from the American central bank.
On Tuesday, Wall Street had already been weighed down by the publication of consumer price figures suggesting that US inflation is only ebbing very slowly.
For investors, these data – combined with indicators that economic activity continues to hold up well – are increasing the pressure for a still restrictive policy.
Cleveland Fed President Loretta Mester said 50 basis point rate hikes were warranted given the current economic environment, while acknowledging that it was better not to surprise the markets too much. .
On the bond compartment, the yields on Treasury bonds rose above 3.84% for the ten-year, not far from their peaks at the end of 2022.
On the values side, Cisco won more than 5% after announcing a 3% increase in its quarterly dividend on the occasion of its quarterly publication.
Hasbro climbed 3.6% although the maker of games and toys presented results below its own objectives, penalized by significant charges linked to its new strategic orientation.
Paramount loses 2.4% after announcing a sharp drop in quarterly profit due to the heavy investments it is currently making in its international development and the addition of content
At sector level, the index of values of services to communities (‘utilities’) shows the largest decline of the day (-1.2%) while that of energy (-0.3%) shows the decline the more limited at the start of the session.
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