PARIS, May 11 (Reuters) – The New York Stock Exchange opened lower on Wednesday after the publication of consumer prices in the United States for the month of April which showed inflation above expectations despite a slowdown in annual rate, the first since last August.
In early trading, the Dow Jones index lost 39.89 points, or 0.12%, to 32,120.85 points and the broader Standard & Poor’s 500 fell 0.47% to 3,982.17 points.
The Nasdaq Composite lost 1.3%, or 152.68 points, to 11,584.98.
An hour before the opening of Wall Street, the US Department of Labor indicated that the rise in consumer prices in the United States had slowed significantly in April due to the effect of the decline in gasoline prices, but excluding energy. and food products, inflation continues to accelerate, above economists’ expectations, suggesting that this slowdown is temporary.
The consumer price index (CPI) decelerated to 0.3% last month and 8.3% year on year, while so-called core CPI inflation rose by 0 .6% over one month and 6.2% over one year.
“It’s a bit of an upside surprise from any perspective, so the scenario of inflation peaking will certainly need to be revisited in light of this data,” comments Ross Mayfield, investment strategist at Baird. Private wealth management.
Faced with runaway inflation, money markets are pricing in 81% of a 75 basis point hike in Federal Reserve rates at the June meeting after a half-point replacement in the cost of credit last week.
In the bond market, the yield on ten-year US Treasuries, which was down before the consumer price release, rose again, gaining 3.3 basis points to 3.026%.
In values, the giants of new technologies, sensitive to changes in interest rates, are weakening. Tesla, Amazon, Microsoft, Apple and lose 0.4% to 1%.
On the upside, oil companies are rising in the wake of rising crude prices, following supply concerns as the European Union strives to reach a consensus on new sanctions against Russia, including an embargo on oil. Chevron, Exxon Mobil, Devon Energy, Marathon Oil, and Schlumberger consume 1.9% to 3%.
In earnings releases, Coinbase Global plunged 23% after posting a first-quarter net loss amid a stock market rout.