The Dow Jones index lost 0.46% to 34,089.97 points and the S&P 500 0.03% to 4,136.13 points while the technology-dominated Nasdaq gained 0.57% to 11,960.15 points.
Inflation remained strong in the United States in January, slowing less than expected over one year and even accelerating over the month, for the first time since October, according to the CPI index published on Tuesday.
Consumer prices increased by 6.4% over one year, against 6.5% the previous month while 6.2% was expected. And over just one month, the rise in prices accelerated to 0.5%, after +0.1% in December (figure revised upwards against -0.1%).
“Financial markets are looking more at the monthly numbers rather than the yearly number, which just shows one month of new data and eleven months of old data,” explained Steve Sosnick of Interactive Brokers (IBKR).
The analyst insisted in particular on the revision of monthly inflation for the month of December, which went from -0.1% to +0.1%: “people had been enthusiastic when Fed Chairman Jerome Powell had mentioned the word disinflation. That was probably right since inflation was negative. But now that’s not quite what you’re seeing,” Sosnick noted.
“This news on inflation is not the friend of the market and we have seen that the bond market was not happy,” further summarized the IBKR analyst.
Yields on two-year Treasury bills swelled by 10 basis points to 4.61% and those on ten years rose to 3.74% against 3.70% the day before, the highest since the start of the month. ‘year.
According to Mr. Sosnick, the stock market, which went from red to green several times during the session, ended partially positive on the basis of statements from a member of the Fed.
Patrick Harker, of the Philadelphia Fed, said the central bank was “nearing” the end of the rate hike cycle. “It’s true that we are closer to the end than the beginning, but that’s not really significant. The market, which is in bullish mode, is looking for every excuse to go up,” the analyst further commented.
On the value side, Boeing took off (+ 1.29%) after a large firm order for 190 Boeing 737 MAX, 20 long-haul B787 and 10 B777X by Air India. More than 200 aircraft have also been ordered from Airbus in a letter of intent by the Indian company.
The Nasdaq was driven by Tesla (7.51%) which raised certain prices and which is also preparing a meeting of its investors for the beginning of March.
Graphics card maker Nvidia jumped 5.43% taking advantage of the current of enthusiasm around artificial intelligence players.
Coca-Cola dropped 1.67% despite strong results in the 4th quarter, thanks in particular to price increases.
The group expects a slowdown in inflation this year which will nevertheless compress the growth of its annual sales in 2023.
Data analytics specialist Palantir, which posted a profit for the first time since its founding in 2033, saw its stock soar 21.16% to $9.22.
Airbnb ended up 3.82% and was up almost 9% in post-close electronic trading. The tourist rental platform beat forecasts for its revenue in the last quarter to $ 1.9 billion and its projections for the first months of 2023 are better than expected.