PARIS (Reuters) – The New York Stock Exchange opened higher on Wednesday, supported by the day’s macroeconomic publications which confirm the slowdown in inflation and demand, which could encourage the American Federal Reserve (Fed) to no longer raise interest rates in the current cycle of monetary tightening.
In early trading, the Dow Jones index gained 107.97 points, or 0.31%, to 34,935.67 points and the broader Standard & Poor’s 500 rose 0.33% to 4,510.71 points.
The Nasdaq Composite gained 0.38%, or 52.89 points, to 14,147.27.
After the monthly figures for consumer prices (CPI) in the United States which showed on Tuesday a stronger deceleration than expected in October, another statistic was confirmed on Wednesday the slowing of inflationary pressures in the country, since the growth of producer prices (PPI) weakened last month at a faster pace than expected.
This report, combined with slowing employment and wage growth, led many economists to predict that the Fed’s current cycle of monetary tightening, which began in March 2022, was now at its peak.
Especially since retail sales in the United States fell in October, by 0.1% after an increase of 0.9% in September, a sign of a slowdown in demand against a backdrop of high interest rates.
In terms of values, Target soared 14.46% after announcing that it anticipated a profit well above Wall Street’s expectations for the current holiday quarter. Its competitor Walmart takes 0.91%.
Another spectacular increase, Sirius Xm Holdings climbed 9.77%, Berkshire Hathaway having taken a stake in the group.
(Writing by Claude Chendjou, edited by Kate Entringer)
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