(New York) The Wall Street indexes ended in mixed order on Friday, undecided after a rebound in the wholesale price index in July in the United States.
The Dow Jones Index advanced 0.30% to 35,281.40 points, the tech-heavy NASDAQ fell 0.68% to 13,644.85 points and the S
The wholesale price index rose 0.3% month on month in July, while analysts expected 0.2% and prices had been flat the month before. Service costs (0.5%) drove the increase, showing that inflation is still present.
“These inflation data was stronger than expected and the market was taken aback as the CPI inflation index the previous day came out weaker than expected,” said Adam Sarhan of 50 Park Investments.
General inflation in July year on year, announced Thursday, accelerated to 3.2%, against 3% and 3.3% expected.
“The market likes certainties, but there is a lot of uncertainty now about inflation,” said Adam Sarhan.
“The reason this is important is that the Federal Reserve (Fed) has assured that its primary goal is to fight inflation. Clearly, we are seeing inflationary pressures in several sectors of the economy which could push inflation indices up,” the analyst explained. Oil prices, for example, have been on the rise for seven weeks in a row, which is driving up the price of gasoline at the pump.
For Will Compernolle of FHN Financial, these figures “should not change the outlook for the next meeting of the Fed’s monetary committee in September”, which should maintain a status quo on key rates according to market bets.
But if inflationary pressures continue, “the Fed will have its back against the wall and will have to raise rates to counter inflation,” said Adam Sarhan.
While investors’ bets are overwhelmingly betting on a Fed rate status quo in September, the odds of a November hike rose a bit on Friday (33%), according to CME Group calculations on futures. term.
On the bond market, rates tightened sharply. The 10-year one was at 4.16% around 4:10 p.m. (Eastern time) compared to 4.10% the day before.
On the stock market, the technology sector led the decline. Semiconductor manufacturers have concluded clearly in the red. AMD returned 2.41%, Nvidia -3.62%, Micron Technology -1.64%.
Tesla dropped 1.10% to $242.65 and Meta fell 1.34% to $301.64, no doubt unrelated to the fact that the boss of the electric vehicle manufacturer and X (ex-Twitter) Elon Musk has announced that he plans to stage his fight with Facebook executive Mark Zuckerberg in Italy.
The Dow Jones meanwhile was supported by Merck Laboratories (1.80%) and oil group Chevron (2.01%).
The heavyweights of distribution which are on the program next week for the publication of their results have remained in the green like the hypermarkets Walmart (0.59%), the DIY chain Home Depot (0, 52%) and the Target supermarket chain (0.10%).
The Tapestry group, which oversees the Coach and Kate Spade brands, gained 1.30% after losing almost 16% the day before when it announced the acquisition of Capri, parent company of Michael Kors and Versace. Capri fell 1.41% after surging 55% on Thursday.
Cryptocurrency exchange Coinbase shed 2.85% to $81 as the sector’s image suffered further. On Friday, a New York judge sent Sam Bankman-Fried, the founder of the fallen platform FTX, back to prison for violating the rules of his parole.
The Toronto Stock Exchange ended the week higher on Friday.
The composite index S
The Canadian dollar was worth 74.39 US cents, compared to 74.58 US cents on Thursday.
