The Dow Jones lost 0.47%, the Nasdaq 0.64% and the broader S&P 500 index 0.60%.
The New York Stock Exchange ended down, out of breath, as investors worried about continued inflation and a tightening by the American central bank (Fed).
The Dow Jones fell 0.47%, the Nasdaq index 0.64% and the broader S&P 500 index 0.60%.
“The market is troubled by this week’s inflation data and statements from the President of the Fed (American central bank)”, Jerome Powell, commented Tom Cahill of Ventura Wealth Management.
“The indices had moved up a lot in a short period of time, so there was no catalyst to go higher,” the analyst added.
The PPI producer price index rose in October to a higher level than expected by economists, at 2.4% over one year against 2.3% expected.
On Wednesday, the CPI consumer price index accelerated, still in October, to 2.6% compared to 2.4% in September.
“The PPI will not fundamentally change the Fed’s downward direction (rates), but it makes forecasts more difficult,” said Oren Klachkin of Nationwide Financial Markets.
“Inflation is getting closer to our long-term objective of 2%, but it is not there yet,” Jerome Powell said during a public interview in Dallas (Texas). “We are determined to finish the job.”
As for the economy, it “does not send signals that would push us to rush to lower rates,” added the central banker.
“If the Trump government imposes 60% customs duties on China and between 10 and 20% on other trading partners, this will not help inflation decelerate,” anticipates Tom Cahill.
In addition to tariffs, Wall Street expects to see Donald Trump widen the deficit, a move which would also be likely to raise prices.
The strengthening of inflation and the comments of Jerome Powell have caused short-term bond rates to rise. The yield on 2-year US government bonds stood at 4.35%, compared to 4.28% the day before at closing.
On the market, if the three largest global capitalizations, Nvidia (+0.33%), Apple (+1.38%) and Microsoft (+0.40%), were spared, the other tech giants suffered. profit taking, in particular Alphabet (-1.74%) and Amazon (-1.22%).
Within the Dow Jones, the health sector was targeted, against the backdrop of the appointment of Robert Kennedy Jr to the post of Ministry of Health in the future Trump administration.
A vaccine skeptic, a regular relayer of conspiracy theories, the septuagenarian worries part of the health sector, within which the health insurer UnitedHealth (-2.10%), the biotech Amgen (-1.83%) and the conglomerate Johnson & Johnson (-0.89%) suffered on the stock market on Thursday.
Elsewhere on the table of values, the Disney group jumped (+6.23%), after publishing results above expectations for its fourth quarter, despite a falling net profit.
The American entertainment giant saw its results driven by cinema and showed an improvement in the profitability of its streaming platforms.
The American multi-brand ready-to-wear group Tapestry soared (+12.80%) after indicating on Thursday that it would give up buying its competitor Capri (+4.43%), a decision which comes after the blocking of this union by a US federal judge at the end of October.
The electric vehicle industry was derailed after Reuters reported that Donald Trump’s team plans to end the $7,500 car tax credit electric in the United States.
Rivian (-14.30%) and Lucid (-4.59%) fell, but Tesla was not spared either (-5.77%), while many believe that Elon Musk’s group should suffer less from this measure than its competitors, primarily because of its size on the American market.
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