The New York Stock Exchange is decreasing on Thursday, accusing the inflation on the producer side significantly higher than expectations, which attenuates the hypothesis of a strong softening of the monetary policy of the Federal Reserve (Fed).
Around 1:50 p.m. GMT, the Dow Jones fell 0.26%, the enlarged S&P 500 index of 0.09%, and the NASDAQ index lost 0.11%.
Over a month, the production price index (PPI) increased by 0.9%, according to data published Thursday by the Labor Department, after being stable in June.
The increase is much more marked than analysts foresee, who tamed on an advance of 0.2% of prices in July, according to the consensus published by Marketwatch.
Excluding food, energy and commercial services, considered more volatile, the increase in production prices remains significant, of around 0.6%.
This is the most marked increase in the underlying index since March 2022, shortly before the peak of inflation observed in the summer of 2022 in the United States.
“We are therefore starting to see the impact of customs duties on inflation, and this starts with production prices,” said AFP Sarhan, 50 Park Investments.
“The question is as follows: will this affect consumers? For the moment, the answer is no,” adds the analyst.
These data are published two days after the consumer price index (ICC), which had highlighted it a prices stabilization over one year, at 2.7% in July.
Within investors, “fear is that this inflation is repercussive on the PCE price index (favored by the Fed, editor’s note) and prevents the institution from being as aggressive in its approach to reducing the rates as what had been envisaged” at the start of the week, underlines Patrick O’Hare, from Briefing.com.
The American central bank has a double mandate, which consists in maintaining American inflation around 2% in the long term while ensuring conditions to maintain full employment in the United States.
Consequently, “it cannot reduce its rates if inflation increases,” recalls Mr. Sarhan.
A large majority of experts expect a reduction in rates at the next meeting of the institution’s monetary policy committee, according to the CME monitoring tool. But they are less and less to plan other decrees during the following meetings.
The publication of the PPI index has set out the US bond market: around 1:45 p.m. GMT, the two -year yield, most sensitive to monetary policies, was around 3.72% against 3.67% at the end on Wednesday. The ten years increased from 4.23% to 4.26%.
In addition, weekly unemployed inscriptions have slightly decreased to 224,000, below the expectations of analysts who tamed on 228,000 requests.
On the business side, the Bullish cryptocurrency exchange platform (+12.41% at 76.44 dollars) continued its high increase for its second day of rating on the New York Stock Exchange.
The Chinese online commerce giant JD.com (-1.63% to 31.98 dollars) suffered from a decline in net profit, at 6.2 billion yuan for the second quarter (around 900 million dollars), despite a jump of more than 22% of its turnover.
The specialist in agricultural equipment Deere (-6.58% to 479.76 dollars) slipped after having revised down his annual forecasts. The company now provides turnover between 4.75 and $ 5.25 billion.
Nasdaq
Posted on August 14 at 4:03 p.m., AFP
