Categories: Business

Wall Street ends in disarray before inflation – 02/12/2024 at 10:22 pm

New York Stock Exchange (NYSE)

The New York Stock Exchange ended in disarray on Monday after a session marked by a decidedly wait-and-see attitude ahead of Tuesday’s release of CPI inflation in the United States, providing fresh clues on the Federal Reserve’s rate path.

The Dow Jones index rose 0.33% or 125.69 points to 38,797.38 points.

The broader S&P-500, on the other hand, closed down 4.77 points, or 0.09%, at 5,021.84 points.

The Nasdaq Composite also fell 48.12 points (-0.30%) to 15,942.55, briefly surpassing its close record dating back to November 2021 at the start of the session, less than a percentage point from its all-time intraday high. 16,212.229 points.

CPI inflation figures for January will be released on Tuesday, and will provide further insight into the evolution of the disinflation process, which is necessary for the Federal Reserve to be able to cut its key rates.

“The CPI report tomorrow will make it possible to make an important new point on inflation and determine the pace at which rate cuts can be made,” underlined Michael Rosen, investment director at Angelus Investments. “Nobody wants to make a big bet one way or the other while waiting.”

After the release of indicators showing the strength of the US economy, the probability of a rate cut of at least 25 basis points in May is now estimated at only 52.2%, up from more than 95% at the beginning of the year. for the instrument.

A number of macroeconomic data will also be released in the United States this week and will help markets clarify their outlook for 2024. The Philly Fed sentiment indicator for February, retail sales or industrial production for January, will be released on Thursday.

In stocks, Diamondback Energy jumped more than 9% after it announced its purchase of Endeavor Energy Resources, the largest unlisted oil and gas producer in the Permian Basin, in a cash and stock transaction of about $26 billion, including debt. ()

Nvidia overtook Amazon.com in market capitalization during the session, as enthusiasm around artificial intelligence lifted the chipmaker to fourth place among the most valuable US companies. Nvidia ended the day up very slightly, while Amazon fell more than 1%.

(Written by Johann M Cherian, Ankika Biswas and Carolina Mandal, French version Tangi Salon)

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