NEW YORK (dpa-AFX) – Disappointing US inflation numbers wiped out Wall Street’s initially expected recovery on Wednesday. The Dow Jones Industrial the broker IG rated around 0.5 percent lower at 31,992 points a good half hour before the start of the stock market. Before the inflation data was released, the Dow had been expected to be above 32,500 points at times. The tech-heavy Nasdaq 100
was last seen at around 1.5 percent in the red, before that, however, 1.1 percent in the plus.
High inflation in the US eased off in April, but only slightly. Consumer prices rose by 8.3 percent compared to the same month last year. This is less than the increase of 8.5 percent in the previous month, but more than the 8.1 percent expected by analysts on average.
This means that inflation is only slightly away from the highest level in a good 40 years, which it marked in March. The US dollar and capital market interest rates in the US rose as an initial reaction. This suggests that the financial markets are expecting further and significant interest rate hikes by the US Federal Reserve. The central bank is already fighting the high inflation rate with a tighter monetary policy.
“Inflation seems to have peaked. The April figures are showing positive base effects. However, with an annual inflation rate of more than 8 percent, there is still no talk of relaxation,” commented Helaba economist Ulrich Wortberg.
Among the individual stocks could be the shares of Eli Lilly
be in the focus of investors. They were up 0.3 percent in premarket trading. The US pharmaceutical company and its development partner Incyte announced that the US Food and Drug Administration (FDA) has approved the drug Olumiant for the treatment of Covid-19 in hospitalized adults who require mechanical ventilation./edh/jha/
ISIN US2605661048 US6311011026 US78378X1072