(New York) The New York Stock Exchange was heading for a sharply lower open on Thursday after the release of a higher than expected US inflation indicator, likely to encourage the US central bank (Fed) to continue its tightening harsh currency.
Posted at 9:09
Updated at 9:09 a.m.
Around 9 a.m., futures contracts on the three main New York stock indices announced an opening of the Dow Jones down 1.64%, the NASDAQ down 2.88% and the S&P 500 down 2 .01%.
The consumer price index CPI emerged up 0.4% over one month in September, more than the 0.3% expected by economists.
Over one year, inflation is 8.2%, lower than August’s 8.3%, but higher than the 8.1% forecast.
“Inflation data supports aggressive monetary policy until prices show clear signs of deceleration over an extended period,” said Rubeela Farooqi of High Frequency Economics in a note. .
“Not only will the Fed raise rates by 0.75 percentage points next month, but there is now a possibility that they will raise them again by 0.75 points in December,” commented Chris Zaccarelli, of Independent Advisors Alliance, while the operators were counting on half a point so far.
As soon as the CPI inflation indicator was published, the futures contracts, which predicted a sharply higher opening of the New York Stock Exchange, instantly turned around and plunged into the red.
At the same time, bond yields took off. The yield on 10-year US government bonds crossed 4% and hit a new 14-year high of 4.04%.
As for the 2-year rate, which is more representative of investors’ expectations in terms of monetary policy, it climbed to 4.49%, a first for 15 years.