The New York Stock Exchange ended the session with a decrease in monetary policy
NEW YORK, April 12 (Reuters) - The New York Stock Exchange ended lower on Tuesday, after posting gains during the session, amid the prospect of imminent monetary policy tightening by the U.S. Federal Reserve (Fed). again weighed on high-growth stocks and benefited bond yields.
- The Dow Jones index fell 0.26%, or 87.72 points, to 34,220.36 points.
- The broader S&P-500 fell 15.08 points, or 0.34%, to 4,397.45 points.
- The Nasdaq Composite fell for its part by 40.38 points (0.30%) to 13,371.57 points.
In the wake of the release of economic data in line with expectations, the three main Wall Street indices posted solid gains in early trading, benefiting from the easing of bond yields, before the rise in them reversed the trend. tendency.
This changeover took place in the wake of comments by a Fed official, Lael Brainard, who repeated the need for the central bank to fight "promptly" against the rise in inflation, which has reached an unprecedented peak. over several decades.
“Comments from Fed officials are more conservative than markets anticipated,” portfolio manager at Kingsview Asset Management in Chicago.
Consumer prices in the United States rose 1.2% in March and their annual increase reached 8.5%, the highest for more than 40 years, shows data from the Department of Labor published in the daytime.
Among analysts, opinions differ on the persistence of inflation over the long term. Some believe that the inflationary wave could subside, others are not so sure.
"Inflation will last for a while," said Peter Cardillo, chief economist at Spartan Capital Securities. "We could see a downturn in the summer months, provided we have lower agricultural and energy prices."
This consumer price data has fueled speculation of another imminent Federal Reserve interest rate hike. "She can't sit idly by," said Paul Nolte.
The energy sector was the best performer among the major sectors of the S&P-500, with a gain of 1.7%, benefiting from the rise in oil prices.