Losses on Wall Street after inflation falls less than expected

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Higher-than-expected January inflation in the US brought down Wall Street indices.

Wall Street closed with notable losses this Tuesday with the Dow Jones closing with a loss of -1.35% to 38,272.75 points; the S&P 500 falling -1.37% to 4,953.17 points and the Nasdaq losing -1.80% to 15,655.6 points, after the mixed signal recorded this Monday. This session, New York indices fell sharply after inflation data disappointed the market.

Both the technological Nasdaq and the S&P 500 closed on Monday with slight losses, although the latter managed to remain above 5,000 points for the second day in a row. For its part, the Nasdaq Composite remains close to the historic highs reached in November 2021.

Today the January reading of the United States Consumer Price Index (CPI) was released, which stood at 3.1% in the interannual rate compared to the 3.4% recorded in December, according to data published by the US Bureau of Labor Statistics . For its part, the underlying rate, which excludes food and energy products, remained at 3.9%. Both were above what was predicted by consensus.

In recent days, different members of the US central bank have tempered market expectations regarding key rate cuts, especially Chairman Jerome Powell, who has stressed that the Fed needs more assurance that inflation is reversing before seeing a reversal in its monetary policy.

Another relevant data this week is the Redbook index, which was released this Tuesday and fell to 2.5% from the previous 6.1%. Retail sales, weekly unemployment data and the Philadelphia Fed’s manufacturing survey will be released on Thursday. Finally, on Friday the readings of the producer price index and consumer sentiment from the University of Michigan will be known.

We should also not lose sight of the corporate earnings season for the fourth quarter and the entire year 2023 in the North American market. Coca-Cola revealed today that it earned 12% more than in 2023,

In other markets, the euro depreciated against the dollar (-0.56% to 1.071 dollars).

West Texas crude rose 1.25% to $77.80.