Wall Street ends up, ignoring inflation


par Stephen Culp

NEW YORK (Reuters) – The New York Stock Exchange ended higher on Thursday as the S & P-500 hit an all-time high closing as investors ignored data signaling accelerating inflation in the United States in siding behind the Federal Reserve’s (Fed) opinion on its temporary nature.

The Dow Jones index gained 0.06%, or 19.10 points, to 34,466.24 points.

The larger S & P-500 gained 19.63 points, or 0.47%, to 4,239.18 points.

The Nasdaq Composite for its part advanced 108.58 points (0.78%) to 14,020.33 points.

The publication in the day of data from the United States Department of Labor showing a stronger than expected increase in consumer prices in the United States has fueled the debate over possible long-term inflation, despite reassuring comments from the Fed on the matter.

However, a more detailed analysis of the data shows that the rise in prices was mainly the effect of commodities and airline tickets, suggesting that this was a temporary trend.

“Another surprise on the upside, but a key point is that a number of items are still in the transitional category so I don’t think the Fed is going to be particularly worried,” said Colin Asher, economist at Mizuho, in London.

Despite progress in the negotiations on the infrastructure investment plan in the United States, after a change of approach by President Joe Biden, the industrial and transport sectors, supposed to benefit from this project, declined.

Of the top eleven sectors in the S & P-500, healthcare posted the largest gain in the session.

The financial sector suffered, dragging down the yield on US Treasuries.

GameStop, headliner of “same stocks”, fell after announcing that it could launch a new capital increase.

Other “meme stocks”, these values ​​for several months at the center of the attention of individual investors mobilized against short sellers, have also declined, such as Clover Health and AMC Entertainment.

Boeing marked a slight increase after Reuters, citing sources, reported that the aircraft maker was in talks with United Airlines for a large single-aisle order that would be shared with Airbus.

Pfizer posted gains after the United States announced it purchased 500 million doses of the COVID-19 vaccine for $ 3.5 billion for distribution to poor countries.

(French version Jean Terzian)

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