Wall Street Pre-Open: Drop in Sight, Inflation Sends Chills

Wall Street Pre-Open: Drop in Sight, Inflation Sends Chills

#Wall #Street #PreOpen #Drop #Sight #Inflation #Sends #Chills

(Photo credits: Flickr - Scott Beale)

(Photo credits: Flickr – Scott Beale)

(AOF) – Wall Street is expected to fall sharply at the open on the back of European markets. Investors reacted very badly to the announcement that US inflation beat expectations in May. Consumer prices rose sharply again last month, reducing household purchasing power and weakening the economy. This bad news could lead the Fed to further accelerate its monetary normalization, even if that means penalizing growth. At around 3pm, S&P500 and Nasdaq 100 futures fell 1.43% to 3,960.25 points and 1.72% to 12,091.5 points.

yesterday on wall street

US markets closed sharply lower after the ECB announcements. Not only will it raise its main policy rate by 25 basis points in July, but it has opened the door for a 50 basis point rate hike in September. These “hawkish” statements from the ECB led to a further increase in long rates in Europe and the United States. The US 10-year bond was thus above the 3% threshold. The Dow Jones lost 1.94% to 32,272.79 points and the Nasdaq Composite lost 2.75% to 11,754.23 points.

macroeconomic figures

The consumer price index increased by 1% in May after +0.3% in April. It is above the Reuters consensus of +0.7%. It increased 8.6% in one year against the 8.3% expected. Excluding energy and food, inflation rose to 0.6% in May in one month against a consensus of +0.5%.

University of Michigan Consumer Confidence Index for June (first estimate) is due at 4 p.m.

The values ​​to follow


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spiritual airlines

Spirit Airlines rose 2% in pre-opening on Wall Street, thanks to a favorable rating from analysts. Indeed, JPMorgan upgraded its recommendation from Neutral to Overweight on the stock, while raising its price target from $24 to $30. The broker believes the likelihood of a merger with JetBlue at Frontier’s expense is growing.

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