New York (AFP)
The New York Stock Exchange was moving in the red on Friday morning, preparing to conclude a decline in a week dominated by the upward revision by the US Central Bank (Fed) of its inflation projections for 2021.
Around 13:50 GMT, the Dow Jones fell 1.02% to 33,479.69 points, heading for a fifth session of decline in a row, the Nasdaq fell 0.36% to 14,110.68 points and the S&P 500 lost 0.72% at 4,191.47 points.
"The US stock market retreated at the start of the session, the Dow and the S&P 500 continuing their recent decline after a week when the Fed adopted a slightly less accommodating tone," said experts at Charles Schwab.
At the end of its meeting Wednesday, the Federal Reserve indeed raised its inflation forecasts in the United States this year, envisaging a rise in prices of 3.4%, against an estimate of 2.4% in March.
The market stiffened somewhat when it discovered that a majority of the members of the Monetary Policy Committee (FOMC) were now in favor of two key rate hikes by the end of 2023.
On Friday morning, James Bullard, chairman of the Federal Reserve in St. Louis, even considered a rate hike as early as next year.
"We expect a good year and a good reopening (of the economy, editor's note)," said Bullard.
"But it's an even better year than we expected, with more inflation than we expected. So it seems only fitting that we take a bit more severe tone to contain inflationary pressures."
Fed Chairman Jerome Powell, however, reassured this week that he considered inflation "transient" and saw it stabilize in 2022 and 2023.
Among the values of the day, the specialist software Adobe rose 2.04%, benefiting from better-than-expected quarterly results.
US firearms maker Smith & Wesson jumped 10.64% after reporting a sharp rise in quarterly revenues.
On the bond market, the 10-year rate on the US debt evolved at 1.49%, against 1.51% Thursday evening.
© 2021 AFP