PARIS (Reuters) – The New York Stock Exchange opened lower on Friday after the publication of a statistic showing a rebound in consumer spending and an acceleration in inflation in the United States in January, which could support the scenario of an extended rise in interest rates by the US Federal Reserve (Fed).
In early trading, the Dow Jones index lost 332.34 points, or -1%, to 32,821.57 points and the broader Standard & Poor’s 500 fell 1.16% to 3,965.55 points.
The Nasdaq Composite lost 1.48%, or 172.02 points, to 11,418.37.
An hour before Wall Street opened, the Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 1.8% last month after a contraction of 0.3% the previous month, while the PCE inflation index, closely followed by the Fed, came out at +0.6% after +0.2% in December. Over one year, the PCE index posted an acceleration to 5.4% against 5.3% in December.
The “core PCE” index, for its part, emerged up 0.6% over one month and 4.7% over one year, figures above the Reuters consensus and up from December.
On the markets, the yield on ten-year US bonds gained more than seven basis points, to 3.95%, and that of two years, even more sensitive to inflation, jumped by 10.2 points to 4.79 %.
Technology and growth stocks like Tesla, Amazon, Apple or Nvidia, whose valuation depends on the level of interest rates, fell from 1.52% to 2.63%. The “tech” index fell by 1.01%.
ADOBE fell 6.40% in response to information that the US Department of Justice is preparing to block its plan to buy Figma.
In other compartments, Boeing lost 3.33% after the temporary suspension of deliveries of the 787 Dreamliner for additional analyzes on an element of the aircraft’s fuselage, while Warner Bros. Discovery gained 1.47% after its fourth quarter results .
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(Written by Claude Chendjou, edited by Kate Entringer)
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