The U.S. Labor Department report showed consumer prices rose more than expected in December, causing investors to rethink how many rate cuts the Federal Reserve will be able to make in 2024.
The main Wall Street indices fall this Thursday after the index of US inflation is higher than expected and dampen hopes of an early interest rate cuton a day when crypto stocks rise following regulatory approval on the Bitcoin.
He Dow Jones Industrial Average down 251.44 points, or 0.7%, to 37,444.29 units; the index S&P 500 it lost 39.31 points, or 0.8%, to 4,744.14 units; and the Nasdaq Composite It advanced 147.42 points, or 1%, to 14,821.68 units.
Before turning around, the reference S&P 500 It briefly surpassed its all-time closing high of 4,796.56 points, reached in January 2022, before erasing initial gains.
Bad for interest rate: US inflation was higher than expected
A Department of Labor report American showed that consumer prices rose more than expected in December, while rents maintained their upward trend.
“What this data really shows is that the path to a soft landing is not a straight line. The higher-than-expected inflation figure means that Investors have to rethink how many rate cuts the government can make. Federal Reserve in 2024, and when,” he said Brian Jacobsenby Annex Wealth Management.
Microsoft surpassed Manzana as the most valuable company in the world
Meanwhile, Microsoft surpassed Manzana as the most valuable company in the world after the manufacturer of the iPhone will begin 2024 with its worst start in years due to concerns about demand. Microsoft shares rose 0.7% and those of Apple lost 0.9%.
Cryptoassets like Coinbase, Bitfarms and Riot Platforms They gained between 5% and 11% after the US securities regulator approved the first exchange-traded funds (ETFs) to track bitcoin spot.
Citigroup It was down 2.7% after a report showed it booked about $3.8 billion in combined charges and reserves that will eat into its fourth-quarter earnings, which will be released on Friday. Other banks like JPMorgan Chase, Bank of America and Wells Fargo They will also present their results on Friday.
Source: Ambito
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