The New York Stock Exchange (NYSE) in New York
The New York Stock Exchange opened higher on Wednesday after data showed that “core” inflation in the United States rose less than expected in December year-on-year, which slightly strengthened expectations for declines in Federal Reserve (Fed) rate this year.
In early trading, the Dow Jones index gained 648.79 points, or 1.53% to 43,167.07 points and the broader Standard & Poor's 500 rose 1.50% to 5,930.34 points. The Nasdaq Composite gained 1.77% or 336.52 points, to 19,380.909.
Over one year, the consumer price index increased by 2.9% in December, in line with expectations, but the “core CPI” index, which excludes the volatile elements such as food and energy, decelerated slightly to 3.2%, compared to 3.3% expected.
This data, which at the same time caused a fall in bond yields, revives expectations of rate cuts by the Fed in 2025 even if the extent and number of these cuts remain under debate.
American banks also published better than expected results on Wednesday thanks to the performance of their corporate and investment banks (BFI).
In stocks, JPMorgan, which reported a record annual profit of $58.5 billion, gained 1.4% and Wells Fargo 5.7%.
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(Written by Bertrand De Meyer, edited by Blandine Hénault)
