A rise in inflation in the US dampened sentiment on Wall Street
An accelerated rise in inflation in the US dampened sentiment on Wall Street on Wednesday. The Dow Jones index closed almost unchanged at 34,378 points, the S&P 500 gained 0.3 percent. The technology-heavy Nasdaq composite was 0.7 percent stronger.
The eagerly anticipated consumer prices were 5.4 percent, slightly higher than the expected 5.3 percent. Given the current main theme of inflation, they attracted increased investor interest. According to Helaba’s market strategists, the inflation data do not provide the US monetary authorities with any reason to abandon their planned throttling of bond purchases. The yield on ten-year paper was listed 3.1 basis points lower at 1.54 percent.
At their council meeting in September, the US Federal Reserve examined plans to reduce the bond purchase program this year. According to the minutes published on Wednesday, the bond purchases could possibly be stopped completely by the middle of next year.
In the past few days, fears of inflation had weighed on sentiment in the stock markets, fueled by rising energy prices and persistent bottlenecks in the supply chains. It is still unclear whether and how this will affect the monetary policy of the central banks.
The focus was also on the reporting season for the third quarter, which started on Wednesday. Here investors are hoping to find out whether the higher costs for energy and raw materials have diminished the results. JP Morgan, Blackrock and Delta Air Lines kicked off, with other major banks and other companies following on the rest of the week.