(New York) The New York Stock Exchange was in the green on Tuesday after new inflation data showed, on the eve of a monetary meeting of the American central bank (Fed), that the rise in prices slowed the last month in the United States.
The Dow Jones Index advanced 0.41%, the tech-heavy NASDAQ gained 0.46% and the S
On Monday, the Dow Jones had gained 0.56% to 34,141 points and the broader index S
The CPI consumer price index slowed sharply in May to 4% year on year from 4.9% in April, the lowest now in more than two years, according to Labor Department figures released Tuesday just before the opening of the market. This is in line with analysts’ expectations, and is the lowest level since March 2021.
Inflation is now half as high as in July 2022, when it peaked at 9.1% year-on-year, unseen for over 40 years.
Over one month alone, consumer price inflation was 0.1% compared to 0.4% in April, better than expected, mainly thanks to lower energy prices.
On the downside, however, underlying inflation (excluding food and energy prices) remained high at 5.3% over one year and 0.4% over the month.
The release of these figures comes the day before the Fed’s decision on overnight rates, which it has been raising for more than a year to curb inflation. The Fed should leave them unchanged this time around, the markets calculate.
But investors will above all be watching the central bank’s intentions for the coming months through its new projections and the press conference of its president Jerome Powell.
Paul Ashworth of Capital Economics said that with underlying inflation “still elevated, the Fed should signal tomorrow that it is inclined to raise rates at the next meeting in late July.”
For HFE’s Rubeela Farooqi, the Fed’s Currency Committee should at least “keep rates where they are until the end of the year.”
On the bond market, yields had a first clear movement of easing after the publication of the CPI index before moderating their decline. Rates on ten-year Treasury bills were stable at 3.73% and those on two years fell to 4.54% against 4.57% the day before.
On the side, technology stocks led the rise while they are sensitive to the more expensive interest rates which affect their access to the financing necessary for their growth.
Software giant Oracle was up 4.33% by 9:50 a.m. EST after reporting better-than-expected Q4 results with revenue of $13.84 billion.
Tesla gained 1.42%, Netflix 2.19%, Intel 1.19%.
Apple’s stock fell a little (-0.38%) after hitting a new high the previous day at $183.79, which brought its capitalization close to $3,000 billion.
The graphics card specialist Nvidia, very driven by the demand generated by the development of artificial intelligence, was once again close to the bar of 1,000 billion in stock market valuation. Its stock rose 1.26% to $399.
The Coinbase cryptocurrency trading platform, after finishing in the red the day before, picked up again (2.79%) while bitcoin stabilized at 26,000 dollars (0.48%).