Around 2:50 p.m., the Dow Jones lost 0.50%, the Nasdaq index dropped 0.13% and the broader S&P 500 index lost 0.37%.

The PCE price index, the most followed by the Fed, emerged up 0.3% over one month in August, more than the 0.2% expected by analysts.

Over one year, inflation reached 6.2%, ie more than the 6.0% forecast, but less than the previous month (6.4%).

For Peter Cardillo, of Spartan Capital, this slight slowdown over one year shows that "inflation has undoubtedly passed a peak".

However, "this higher than expected inflation figure will keep the pressure on the Fed to continue raising its rates, which will weigh on equity markets", reacted Chris Zaccarelli, Independent Advisor Alliance.

For him, if Wall Street can afford a short-term rebound, "we will only get out of this bear market when the Fed stops raising its rates".

Investors also noted the increase in consumption in the United States, by 0.4% gross in August over one month and even by 0.1% corrected for inflation, the latter indicator being in line with expectations.

"The United States is expected to post GDP (gross domestic product) growth in the third quarter, after two consecutive negative quarters," according to Jeffrey Roach of LPL Financial.

"But that growth may not last. A recession looks likely in early 2023 as the economy falters in the face of an aggressive Federal Reserve."

"The Fed has no room to change its plans this quarter, so the market will remain choppy," warned Peter Cardillo.

In a speech delivered Friday in New York, Fed Vice-Chair Lael Brainard joined her colleagues in recent days and said the institution's monetary policy would have to be "restrictive for some time to ensure that inflation returns to its long-term objective, i.e. around 2% per year.

A restrictive monetary policy means that it has a negative effect on the growth of the economy and induces a slowdown.

As Friday is the last day of the quarter, Wall Street should see above-average volatility as many investors make last-minute portfolio adjustments.

Some exited equities to reposition themselves in bonds, and bond yields, which move in the opposite direction to prices, eased.

The yield on 10-year US government bonds stood at 3.70%, against 3.78% the day before.

The sports equipment manufacturer Nike was running out of steam (-11.69% to 84.19 dollars) despite the publication, Thursday after the stock market, of a turnover and a quarterly net profit above expectations.

Among the downsides, the weak demand in China and the very high level of stocks, which force the comma brand to grant discounts.

The memory card maker Micron rose (+1.20% to 50.61 dollars) after reporting a higher than expected net profit for its quarter ended in early September.

The group's forecast for its current quarter nevertheless came out well below analysts' projections, Micron citing a slowdown in demand and a "down cycle" for the sector.

The tobacco company Altria coughed (-0.54% to 40.96 dollars) after indicating that it was waiving the non-competition clause concluded with the specialist in electronic cigarettes Juul, in which it owns 35% of the capital.

The cruise line Carnival Corporation sank (-15.01% to 7.78 dollars, weighed down by a turnover much lower than forecast and a loss much heavier than expected. The group nevertheless indicated that reservations for 2023 were above the historical average.

© 2022 AFP