(New York) The New York Stock Exchange was up sharply on Thursday, rebounding from two sessions of declines as U.S. inflation fell short of expectations.
The Dow Jones Index gained 1.25%, the tech-heavy NASDAQ gained 1.50% and the S Index
Year-over-year inflation in July accelerated to 3.2% from 3% in June.
This is the first time in 13 months that annual inflation has risen.
Over one month, it remained stable at 0.2%.
Analysts expected 3.3% year on year and 0.2% month on month.
The positive signal comes from core inflation (excluding energy and food) which slowed to 4.7% from 4.8% year-on-year.
For investors, these figures should encourage the US central bank (Fed) to keep interest rates high without raising them in September.
“While inflation is still well above target and the annual change in the CPI index accelerated in July, underlying prices are moving in the right direction,” said Rubeela Farooqi, of HFE.
“This is good news for monetary policy makers,” she adds, noting that “tight policy on interest rates is warranted for some time to bring prices back towards the 2 %”.
For Oxford’s Ryan Sweet, the new inflation figures should “not change the central bank’s plans”. “The Fed will continue to adopt a hawkish tone because they want to prevent an easing of conditions in financial markets,” he commented.
“Nevertheless, we expect the Fed to avoid rate hikes in September and November when inflation is expected to decelerate further,” said the analyst who believes the Fed’s rate hike cycle is ending .
In the process, yields on ten-year Treasury bills eased to 3.98% from 4% the day before.
After two days of lows on Wall Street, investors regained confidence and took advantage of the decline in stock prices to come back on an upward trend.
“Will this rebound effort with bearish buying hold or not? We’ll find out at the close,” doubted Patrick O’Hare of Briefing.com.
The day before, in the red for the second session in a row, the Dow Jones index had lost 0.54% to 35,123.36 points, the NASDAQ had lost 1.17% to 13,722.02 points and the index S
Another indicator on Thursday helped the indexes climb into the green: jobless claims rose to their highest level in a month at 248,000 (21,000) vs. 230,000 expected.
This easing of the labor market is seen as an asset by the markets, which associate it with less pressure on prices.
On the stock market, the rise in indices was driven on the NASDAQ by tech megacaps such as Apple (1.26%), Alphabet (1.62%) or Meta (1.97%).
The announcement of the takeover by the luxury brand Coach (Tapestry group which also owns Kate Spade) of the Capri group, parent company of Michael Kors, Versace and Jimmy Choo for 8.5 billion dollars, pushed up the title of Capri Holdings down 56% to $54 around 10 a.m. EST.
The proposed takeover price per share is $57. On the other hand, Tapestry dropped 11.76% to 36.40 dollars.
Entertainment giant Disney gained 1.65% despite losing 10 million subscribers to its Disney streaming service, announced the day before. The subscription price increases decided in the process satisfied investors.
The Toronto Stock Exchange continued its rise Thursday noon, with the help of financial, technology and telecommunications stocks.
The index S
