In early trade, the Dow Jones gained 0.01%, the Nasdaq index gained 0.85% and the broader S&P 500 index appreciated 0.40%.

Price growth came in at 4.9 percent year-on-year in April, slightly below the 5.0 percent economists expected, according to the CPI index, released Wednesday.

"This data reinforces the sentiment that the Fed will not raise rates next month," said Jeffrey Roach of LPL Financial. "As inflation and the economy slow over the next few months, the Fed may even find the justification for rate cuts."

The bond market reacted immediately to this data and yields fell sharply. The yield on 10-year government bonds stood at 3.45%, against 3.51% the previous day at the close.

This configuration benefited technology stocks, which depended on the cost of money to finance their growth. Amazon (+2.88%), Tesla (+2.37%) and semiconductor maker AMD (+3.37%) were among the most sought-after.

Inflation "is still close to 5%," well above the Fed's long-term target of around 2% per year, "so why are stocks rising?" asked Adam Sarhan of 50 Park Investments. "That's because the market works by projection. And if this trend continues, if inflation subsides, it will be very good for the economy and for Wall Street."

For Patrick O'Hare of Briefing.com, the New York market is nevertheless still concerned about the political crisis over the debt ceiling of the United States.

Tuesday's meeting between President Joe Biden and Republican and Democratic leaders in Congress produced no tangible results, but the parties plan to continue their exchanges.

On Wednesday, the one-month Treasury yield stood at 5.46%, the highest in at least 20 years. According to U.S. Treasury projections, without an agreement that would raise the debt ceiling, the U.S. could default in early June.

Despite results higher than analysts' projections, Airbnb (-11.94%) was the victim of forecasts deemed disappointing. The platform anticipates a slowdown in its growth in the second quarter, as well as a deterioration in its margins.

The specialist of generic drugs Teva, based in Israel but whose main listing is on Wall Street, was down (-7.80%) after unveiling a surprise quarterly net loss, mainly due to the increase in its costs. The group nevertheless confirmed its forecasts for the full year.

Investors welcomed the results of the regional bank First Citizens (+8.86%), which took over most of the assets of its competitor Silicon Valley Bank (SVB), seized by the authorities in early March, to avoid bankruptcy.

First Citizens managed to increase its deposits in the first quarter, even excluding the contribution of SVB's deposits.

© 2023 AFP