Around 2:00 p.m. GMT, the Dow Jones index climbed 1.59%, the Nasdaq jumped 2.24% and the S&P 500 1.74% after the publication of a stable consumer price index over one month and 8.5% instead of 9.1% in June, over one year.
"This is good news on inflation which is broadly unchanged while core inflation is as expected," reacted Peter Cardillo of Spartan Capital.
"Certainly this is not the end of the rise in prices, but it indicates that we are going in the right direction (...) and the market is enthusiastic," he added.
The CPI price index did not move over a month in July while that of underlying inflation (excluding food and energy) advanced by 0.3% over the month and by 5.9% against 6 .1% over one year.
Calming inflation means "it's likely the Fed won't be as aggressive as it has been in the last two currency meetings," Art Hogan of B. Riley Wealth told AFP.
The Federal Reserve recently raised overnight rates twice by three-quarters of a percentage point.
However, immediately after the publication of the inflation index, the chances of a further 75 basis point hike in the Fed's rates in September rose from 68% on Tuesday to 38% this morning.
According to CME Goup's futures calculations, a large majority of investors are now betting on an upcoming rise of just half a percentage point.
"The market is going to celebrate that," Hogan concluded.
Ten-year bond yields fell in the process, falling to 2.72% against 2.77% the day before and the spread with two-year rates narrowed, even if these remain paradoxically higher than interest rates. ten years (3.11%).
The dollar meanwhile fell 1.14% against the euro to 1.0330 dollars for one euro.
Listed, Tesla shares climbed 1.41% to 862.02 dollars around 2:00 p.m. GMT, while its boss Elon Musk sold nearly $7 billion in shares.
With this sale, the billionaire, who no longer wants to acquire Twitter despite his commitment to do so, seemed to have his back when he could be forced to buy the site if he lost his legal battle.
© 2022 AFP