In the first exchanges, the Dow Jones rose 0.33%, the technological Nasdaq 0.80% and the expanded S&P 500 index 0.58%.
The New York stock market closed sharply lower on Tuesday after inflation data in the United States, worse than expected by the market.
Inflation of 3.1% for 12 months, compared to 2.9% expected by the market, cast doubt on upcoming interest rate cuts by the Federal Reserve, and this hit the main Wall Street indices.
The Dow Jones on Wall Street, which reached a record on Monday, had its biggest daily drop in a year and lost 1.35% to 38,272.75 points, while the technological Nasdaq lost 1.80% to 15,655.60 points, and the S&P 500 sank 1.37% to 4,953.17 units.
The US Bureau of Labor Statistics reported that, in monthly terms, consumer prices increased three tenths compared to December, while underlying inflation, a key data that the Fed analyzes to make its decisions on interest rates, remained at year-on-year terms in 3,9 %.
Treasury bond rates reacted higher. The 10-year paper yields remained at 4.30% against 4.17% on Tuesday, at a high in almost two and a half months. Two-year bond rates jumped to 4.64% from 4.47%.
For Ian Shepherdson, of Pantheon Macroecononomics, the inflation data is “an unpleasant surprise” but it does not change the trend, which is towards a decrease in inflation.
Similarly, for Maris Ogg, of Tower Bridge Advisors, the January CPI is “an incident along the way.”
Source: With information from AFP.
