by Noel Randewich and Ankika Biswas
(Reuters) – The New York Stock Exchange ended mixed on Wednesday as data showing a modest rise in consumer prices in August in the United States supported the hypothesis that the Federal Reserve (Fed) will decide on a pause in its rate hike campaign at its meeting next week.
The Dow Jones index lost 0.20% to 34,575.53 points.
The broader S&P-500 gained 0.12% to 4,467.44 points.
The Nasdaq Composite advanced 0.29% to 13,813.59 points.
According to data released today by the US Department of Labor, consumer prices saw their biggest increase in more than a year last month, driven by the cost of gasoline, but Core inflation rose at its slowest pace in almost two years.
Traders expect the Fed to decide at its September 19-20 monetary policy meeting to maintain interest rates at their current level.
A small majority of them also expect another pause in November, although persistent inflation in the services sector fuels the hypothesis of a rate hike in two months.
“I don’t think the Fed wants to cause a shock and raise 25 basis points when it is expected that it will not do so, but rate hikes cannot be completely ruled out for the rest of the year,” commented Victoria Fernandez, Chief Strategist of Crossmark Global Investment.
Economists polled by Reuters said they expected the Federal Reserve would not cut rates until the second quarter of 2024.
While data on producer prices and retail sales in the United States, expected on Thursday, could influence the Fed’s decision, the rise in the so-called defensive utility sector during the session suggests a certain nervousness among investors. .
Tech giants including Tesla, Meta Platforms and Amazon rose more than 1%. Apple fell for a second consecutive session, by 1.2%, after unveiling on Tuesday its new range of iPhones whose base price will be unchanged.
Among other stock movements of note, Citigroup gained 1.7% after the announcement of a reorganization which will result in additional job cuts and simplify the bank’s management structure.
New York-listed Chinese electric vehicle makers Nio and Xpeng fell as the European Commission opened an investigation into whether tariffs were needed to regulate the flow of low-cost cars exported to Europe . Sprit Airlines lost more than 6% after lowering its revenue forecast for the current quarter, citing rising fuel prices.
(French version Jean Terzian)
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