(New York) The New York Stock Exchange was trading in disarray on Wednesday, oscillating around equilibrium while awaiting the last monetary decision of the year for the Federal Reserve (Fed).
The Dow Jones Index lost 0.03%, the tech-heavy NASDAQ gained 0.17% and the S
“The Fed’s Monetary Committee should keep federal funds rates unchanged between 5.25% and 5.50%,” Wells Fargo analysts recalled.
The day before, the three New York indices had reached new highs since the start of 2022, on a market which welcomed a price index confirming a deceleration in inflation.
The Dow Jones gained 0.48% to 36,577.94 points, the NASDAQ index rose 0.70% to 14,533.40 points and the broader S index
On Wednesday, the publication of the producer price index before the market opened further instilled good humor.
Wholesale prices remained stable in November in the United States, according to the PPI index.
The price increase was zero over one month in November, after having fallen by 0.4% in October compared to September, while analysts, for their part, expected a slight increase in prices, at 0.1%.
Year-on-year, growth is slowing, with prices rising 0.9% compared to 1.2% last month.
“The data confirms the downward trend in inflation, even if the slowdown in consumer prices is more gradual,” commented Rubeela Farooqi, chief economist for HFE.
The CPI index, which measures inflation on the consumer side, reported on Tuesday a slight decline in November compared to October, to 3.1% year-on-year compared to 3.2%.
This data confirmed the market’s belief that the Fed is done with rate hikes. “The Federal Reserve is expected to keep rates stable for a third consecutive meeting,” assures Art Hogan of B. Riley Wealth Management.
According to him, even if the press release will remain cautious and almost unchanged, but the projections of rate developments, the famous “dot plot” tables will indicate whether and to what extent the Fed plans to reduce its rates next year.
The central bank will also publish new economic forecasts which should be revised upwards for growth and downwards for inflation and unemployment, according to analysts.
On the bond market, two-year yields fell to 4.68% compared to 4.73% the day before and ten-year yields stood at 4.16% compared to 4.20%.
At the stock price, Pfizer laboratories fell by more than 9%. The group has forecast a decline in sales in 2024 due to poor demand for anti-COVID-19 vaccines and drugs.
Shares of software giant Oracle fell 1.31% as the company reported weaker-than-expected second-quarter revenue while its forecasts also turned out to be disappointing.
Toy maker Hasbro lost 0.75%. The American group plans to cut around 900 positions within two years, a decision which comes a few months after the announcement of an initial cut of 15% of its workforce (1,000 employees).
Hasbro reported a net loss of $171 million in the third quarter due to a sharp drop in business in its core business of traditional toys and games.
Tesla fell 0.95%. The electric vehicle manufacturer had to recall some two million cars in the United States for an increased collision risk linked to “autopilot”, its driver assistance system.
