(New York) The New York Stock Exchange opened lower on Wednesday, with a higher-than-expected US inflation figure accelerating a phase of consolidation that began on Tuesday after a long streak of hikes.
Around 9:50 a.m., the Dow Jones lost 0.16% to 36,261.16 points, the highly technological NASDAQ index lost 0.52% to 15,803.59 points and the extended S&P 500 index fell by 0 , 24% at 4673.78 points.
Already in the process of settling, the market tightened after the publication of a much anticipated inflation figure which turned out to be higher than expected.
Consumer prices rose 0.9% in October over one month, against 0.6% expected. Over one year, the rate has now reached 6.2%, the fastest for 30 years.
Excluding food and energy prices, the most volatile, inflation is still accelerating and making its biggest monthly jump since June (+ 0.6%).
“The consensus was really too low, but the fact remains that these figures are disappointing,” commented, in a note, Ian Shepherdson, chief economist of Pantheon Macroeconomics.
For him, the “risk increases” that the American Central Bank (Fed) “cannot remain on its line” of a transitory inflation, the scenario to which it clings for several months.
Under pressure, the Fed “may have to accelerate” the normalization of its monetary policy, initiated this month, said Chris Zaccarelli, investment manager for the Independent Advisor Alliance.
The bond market reacted sharply to this inflation figure. The two-year US government bond rate rose sharply, briefly rising above 0.50% from 0.42% before the announcement.
“The market already knew what was happening,” said Art Hogan of National Securities, relativizing the reaction of stock market indices to the announcement.
“What is more important for operators is that we have just completed a season of results which did not see any significant deterioration in margins”, which could have been caused by the increase in prices and costs.
For him, “the market really needed a break” after the series of eight consecutive S&P 500 records, not seen since 1997. “There was one yesterday and it continues today. ”
Wall Street was awaiting the first listing of electric vehicle maker Rivian, whose market capitalization could exceed $ 70 billion on Wednesday if as many securities as possible are issued.
A colossal value, close to that of Ford and General Motors when the company has just put its first vehicle on the market.
The IPO of Rivian benefited Ford (+ 0.94%), which owns around 13% of its capital, but penalized its competitor Lucid (-3.89%).
Elsewhere in the exchanges, the wind was blowing in the back of DoorDash (+ 13.93%) after the announcement, Tuesday after market close, of the acquisition, for 7 billion euros, of the Finnish Wolt Enterprises OY, which gives to the meal delivery platform a presence in Europe.
In the third quarter, the group recorded a marked increase in turnover over one year (+ 45%) but which is running out of steam compared to the previous quarter (+ 3%).
After seeing nearly $ 200 billion in market capitalization soar, Tesla rebounded (+ 2.46%), four days after the announcement, by its founder Elon Musk, of the possible sale of 10% of its shares.
Investors were struggling to digest the results of fast food chain Wendy’s (-8.85%), whose margins are under pressure due to rising costs of labor and raw materials, but also a lower attendance of its establishments.
Mastercard benefited (+ 3.89%) from the extension of its online credit purchasing program, the “BNPL” (Buy Now Pay Later), which is very popular at the moment, to several large groups, notably American Airlines.