PARIS (Reuters) – Wall Street opens uncertainly on Thursday, after reaching records the day before due to the publication of an inflation indicator giving hope for a greater easing of American monetary policy than initially expected.
In early trading, the Dow Jones index gained 27.65 points, or 0.07%, to 39,935.65 points and the broader Standard & Poor’s 500 rose 0.08% to 5,312.34 points. The Nasdaq Composite lost 0.05% or 8.58 points, to 16,733.807.
CPI inflation stood at 0.3% in April after 0.4% the previous month, a figure lower than economists’ expectations and whose slowdown is all the more notable as the CPI indicator gives more importance to housing, one of the main factors of inflation in recent months.
Markets are therefore hoping that the Federal Reserve will cut rates twice this year, with a first cut expected in September, followed by a second in November or December.
The strong rebound in the markets on Wednesday, however, triggers a movement of consolidation, while several monetary policy officials were due to speak on Thursday, including Thomas Barkin, Loretta Mester, Raphael Bostic, Patrick Harker and Michael Barr.
Their comments will help to understand the importance the central bank places on the latest published indicators which suggest that price dynamics are finally coming back under the control of the Fed.
In terms of values, Walmart gained 5.3% after its quarterly results better than expected by the markets.
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(Written by Corentin Chappron, edited by Sophie Louet)
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