A trader on the New York Stock Exchange
The New York Stock Exchange opened higher on Wednesday after the publication of US inflation figures which show a re-acceleration at an annual rate, pleading for a continued reduction in interest rates.
In early trading, the Dow Jones index gained 85.04 points, or 0.19%, to 43,996.02 points and the broader Standard & Poor’s 500 rose 6.63 points, or 0.11%, at 5,990.62 points.
The Nasdaq Composite took 14.83 points, or 0.08%, to 19,296.23 points.
An hour before the opening of Wall Street, the Labor Department indicated that consumer prices (CPI) in the United States had increased in October at an annual rate, to 2.6%, compared to +2.4% in september.
Even if the statistic is in line with the expectations of economists polled by Reuters, it was enough to enthuse the market which is now betting with an 80% probability on a 25 basis point cut in rates from the US Federal Reserve (Fed) in December against a probability of around 60% before the publication of the CPI figures. Before this statistic, futures showed Wall Street opening in the red.
“The US CPI will be a key factor in the Fed’s decision next month. It’s particularly important this time around, as there has been speculation that the Fed may skip this meeting and not cut its funding at all. rate,” explain Deutsche Bank analysts.
On the bond market, the yield on ten-year US Treasury bonds fell by more than six basis points, to 4.3687%, and the two-year yield, more sensitive to rate expectations, by almost nine points, at 4.25%.
At foreign exchange, the dollar, which had reached a new six and a half month peak in the morning against the other main currencies, now lost 0.14%.
On the stock markets, Tesla rebounded by 4.11% after a drop of 6.2% on Tuesday as Donald Trump announced that the boss of the car manufacturer, Elon Musk, will head the Department of Government Efficiency in the United States.
Spirit Airlines tumbled 58.81%, the air carrier having announced that it was in discussions with its creditors, while continuing to explore strategic alternatives to improve its cash flow. The Wall Street Journal, for its part, reported that Spirit Airlines was preparing to file for bankruptcy protection.
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(Written by Claude Chendjou, edited by Blandine Hénault)
