Wall Street opens in disorder ahead of US inflation

Wall Street opens in disorder ahead of US inflation
Wall Street opens in disorder ahead of US inflation

In early trading, after a three-day break for “Memorial Day”, the Dow Jones index lost 124.29 points, or 0.32%, to 38,945.3 points.

The broader Standard & Poor’s 500, on the other hand, increased by 0.13% to 5,311.88 points.

The Nasdaq Composite gained 0.46%, or 77.58 points, to 16,998.382, after setting a record at the opening, thanks to “tech” stocks.

The Reuters consensus forecasts a PCE price index in the United States stable at 2.7% year-on-year in April. But the president of the Minneapolis Federal Reserve, Neel Kashkari, has already warned that the American central bank must wait to observe significant progress in inflation before reducing its rates. He added that the Fed could even raise rates if inflation fails to fall further.

At the start of the year, however, financial markets thought that the Fed would be one of the first major banks to begin the cycle of reducing its borrowing costs, which allowed indices on Wall Street to climb to record levels. .

According to the Fedwatch barometer, the probability of a Fed rate cut is fully integrated for the month of December, while a reduction in November is estimated at only 80% and in September at around 52%.

The yield on ten-year Treasuries fell slightly on Tuesday, by around two basis points, to 4.4551%.

In terms of values, Nvidia advances 4.45% after a gain of 2.5% on Friday and 9.3% on Thursday following the publication of its results and outlook. The semiconductor (+0.79%) and technology (+1.03%) indices are in the green.

Apple takes 1.57% while Reuters calculations based on industrial data show that the Apple group saw its iPhone sales in China jump 52% ​​in April year-on-year. In the wake of Apple, Qualcomm, supplier of components to the group, increased by 0.82%.

United States Cellular climbs 10.72%, T-Mobile US (+0.52%) having announced the purchase of almost all of the mobile activities of the regional telecom operator as part of an operation valued at 4, 4 billion dollars.

Gamestop soars 16.42% after announcing that it had raised nearly $933 million through the sale of 45 million shares as part of an “at-the-market” offering.

(Written by Claude Chendjou, edited by Blandine Hénault)

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