Wall Street: PPI figures point to inflationary pressures
Half an hour before the opening, futures contracts on the major New York indices were down between 0.1% and 0.3%, pointing to a session start in the red.
The Labor Department reported this morning that US producer prices (PPI) rose by 0.5% month-on-month in April, and by 2.2% year-on-year.
The core index, which measures producer price pressures excluding food, energy and business services, reached 3.1% year-on-year, returning to a one-year high.
Released on the eve of the consumer price index (CPI), this data reinforces the scenario of a reawakening of inflation likely to prompt the Fed to postpone its rate cuts.
On the markets, futures contracts on the main Wall Street indices turned lower after the release of these figures, which fuel the prospect of high rates for longer than expected.
The market is now expecting only a 47.7% probability of a rate cut in September, according to the CME's FedWatch barometer, compared with 48.6% yesterday.
At the same time, yields on US Treasuries are on the rise again, with the 10-year paper breaking through the 4.50% barrier to reach 4.51%.
Against this backdrop, investors will be paying close attention to the speech by Fed Chairman Jerome Powell, who will be speaking shortly in Amsterdam at a conference organized by the Association of Foreign Banks in the Netherlands.
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