PARIS (Reuters) – The New York Stock Exchange opened lower on Wednesday amid rising bond yields fueled by inflation fears, as oil prices rose above $120 a barrel.
In early trading, the Dow Jones index lost 232.33 points, or 0.7%, to 32,947.81 points and the broader Standard & Poor’s 500 fell 0.53% to 4,138.27 points.
The Nasdaq Composite lost 0.15%, or 18.84 points, to 12,156.38.
The yield on ten-year US Treasury bills takes more than four basis points to 3.0123% and that of two years, the most sensitive to changes in rates, is displayed at 2.7555% while will be published Friday the monthly consumer price figures in the United States.
Before the US Senate Finance Committee, Treasury Secretary Janet Yellen said on Tuesday that inflation, which is currently hovering above 8%, will remain high and Joe Biden’s administration will likely have to revise its forecast. in this regard for the 2023 budget.
Faced with inflation at a 40-year high, markets are pricing in a half-point rate hike at the June 14-15 US Federal Reserve meeting. An increase of the same magnitude is expected in July and the prospect of a break in September is considered weak.
While investors fear that this acceleration in the cost of credit will plunge the economy into recession, the Organization for Economic Co-operation and Development (OECD) on Wednesday raised its estimate of inflation in member countries to 8.5% this year and lowered that of world GDP growth to 3% this year.
In values, Microsoft and Apple, which had each gained more than 1% on Tuesday, fell respectively by 0.4% and 0.2% with the decline in the sector index of new technologies (-0.6%).
Oil groups like ExxonMobil and Chevron are taking advantage of soaring crude prices, with Brent trading at $122 a barrel.
In business news, Western Digital gained 3.2% following a review of its strategic options as requested by the activist fund Elliott Management, while Intel fell 4.6% after the publication of a Citigroup note forecasting a difficult second quarter for the semiconductor giant.
The cruise line Carnival lost 3.6% after a reduction in its price target by Morgan Stanley and Campbell Soup gained 2.9%, supported by the increase in its forecast for annual sales.
(Written by Claude Chendjou, edited by Jean-Stéphane Brosse)
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