Slight rebound on Wall Street after inflation-linked fall, Companies news

PARIS, Sept 14 (Reuters) – The New York Stock Exchange opened slightly higher on Wednesday after its worst close since June 2020, but the trend remains cautious as concerns about an acceleration of monetary tightening in the United States remain strong. .

In early trading, the Dow Jones index, which lost 3.94% on Tuesday, rebounded 38.79 points, or 0.12%, to 31,143.76 points. The Standard & Poor’s 500, wider, down 4.32% on Tuesday, rose 0.24% on Wednesday to 3,942.15 points.

The Nasdaq Composite, meanwhile, took 0.24% (27.51 points), to 11,661.08 points, after having fallen the day before by 5.16%.

All three Wall Street indices, which on Tuesday recorded their biggest single-session percentage decline in more than two years, are buoyed by bargain buying.

An hour before the opening of Wall Street, the Labor Department announced that producer prices in the United States had fallen in July, by 0.1%.

However, this new contraction is less marked than that of the previous month, when prices fell by 0.4%.

The day before, the figure for consumer prices in the United States, which emerged up 0.1% in August after stagnating in July, had already disappointed investors who were betting on a further slowdown in inflation.

One week before the US Federal Reserve (Fed) monetary policy meeting, markets now assess the probability of a 100 basis point rate hike on September 21 at 37% compared to 0% the day before, before the publication consumer price statistics.

Some analysts believe the fed funds rate could peak at 4.34% by March 2023.

The CBOE volatility index (-1.10%), considered a reliable barometer of investor nervousness, remains close to its two-month peak hit on Tuesday at 27.5 points.

In values, new technology giants like Tesla (+0.76%), Apple (+0.57%), Amazon (+0.53%) and Microsoft (+0.36%) regain some of the lost ground tuesday.

In business news, Starbucks is up 3.67% after announcing a forecast for like-for-like sales growth of 7% to 9% per year over the next three years and a possible distribution of around 20 billion dollars to its shareholders over the same period.

Johnson & Johnson, up 1.27%, is driven by the announcement of a share buyback plan, the amount of which could reach five billion dollars.

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