The New York Stock Exchange opened sharply higher on Wednesday, welcoming a consumer price index in the United States, which also eased pressure on the bond market.
Around 3:00 p.m. GMT, the Dow Jones gained 1.67%, the Nasdaq index gained 2.04% and the broader S&P 500 index gained 1.69%.
Inflation accelerated again in December in the United States, for the third month in a row, to 2.9% over one year, according to the CPI index published Wednesday by the Department of Labor, and on which inflation rates are indexed. retirements.
On the other hand, it is the so-called core inflation, which excludes the volatile prices of food and energy, which marked the minds of investors on Wednesday, by showing signs of deceleration.
It stood at 0.2% over one month (compared to 0.3% last month) and 3.2% over one year (compared to 3.3%), below analysts' expectations.
The American market had already welcomed Tuesday the publication of the producer price index in the United States (PPI), which measures inflation on the producer side and which was better than expected by the market.
“After a more moderate PPI than expected”, the American market had “confirmation of this trend with the CPI”, which was “slightly better than expected” at the underlying level, commented to the AFP Art Hogan of B. Riley Wealth Management.
“This creates optimism in the markets,” added the analyst.
“The decline in underlying inflation should ease pressure on stock and bond markets, which have both had a poor start to the year due to fears of rising prices,” Chris Zaccarelli observed in a note. , from Northlight Asset Management.
Investors have been worried for several days about the possibility of a rebound in inflation in the world's largest economy, which would push the American Central Bank (Fed) to put the brakes on its monetary easing policy. .
In this context and following the publication of the CPI index, the yield on ten-year American government bonds eased very significantly, settling around 2:50 p.m. GMT at 4.65% compared to 4.79% the previous year. closing watch. On the two-year maturity, it stood at 4.26% compared to 4.36%.
Wall Street is now awaiting the PCE index, favored by the Fed, which will be published at the end of the month. This indicator has recently increased (to +2.4% in November). The Fed's goal is to bring it down to 2%.
On the business side, Wall Street was satisfied by the publication of a first burst of quarterly results from the financial sector.
The “market expected a lot from the banks”, and those which published their results today “did not disappoint”, according to Mr. Hogan.
The JPMorgan Chase bank gained 1.62% after publishing results for the fourth quarter on Wednesday that met expectations, thanks to all its branches, but the investment bank was marked by good performance.
Citigroup was also sought after (+6.62%) after once again doing better than expected, benefiting from the effects of its restructuring launched in 2023.
Goldman Sachs (+583%) also exceeded expectations, welcoming “solid results” across all of its activities.
Wells Fargo was in the green (+5.63%) after having done a little better than expected in the fourth quarter, marked by stagnation in turnover and a jump in its net profit while it continued to reorganize its activities.
The American group BlackRock, the world's leading asset manager, grew (+3.51%) thanks to good results, the group's year having been marked by a turnover which for the first time crossed the 20 billion dollars.
Results from Morgan Stanley and Bank of America are expected Thursday before Wall Street opens.
- Nasdaq
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