Noticeable decline on Wall Street after inflation numbers – E24

Price inflation in the US remains higher than expected. Technology stocks are falling on US stock markets, while interest rates are rising.

The status is updated throughout the trading day.

This is how things stand for the three major indexes on Wall Street at 6.20pm:

• The S&P 500 collective index fell 1.20%.
• The Nasdaq technology index fell 1.48 percent
• The Dow Jones index fell by 1.18%.

Stocks fly after activist buying

Activist investor Carl Icahn has taken a roughly 10 percent stake in the airline JetBlue. CNBC He writes that Icahn believes the stock is undervalued.

The share was up 16.6 percent on Tuesday afternoon.

The news agency indicates Documents sent to the US Financial Regulatory Authority, the Securities and Exchange Commission writes that a number of purchases were made in January and February. It states that Icahn will continue discussions with Jet Blue about board representation opportunities.

Carl Ichan, who is behind Ichan Enterprises (IEP), is known for being a very active owner in many of the companies he buys into.

CNBC He writes that he became really famous after the hostile takeover of Trans World Airlines. He took the airline off the stock exchange, after which the company was declared bankrupt.

He has also been involved as an activist investor in McDonald's.

Price inflation moderated less than expected

Sentiment on Wall Street deteriorated significantly in the pre-trade period when the new inflation numbers were released.

Inflation stabilized lower than expected to 3.1 percent in January, while core inflation remained unchanged.

– Not particularly encouraging, says Harald Magnus Andreessen, chief economist at Sparebank 1 Markets, to E24.

– Now June is approaching

Inflation in the United States has cooled from its highs, but remains above the target of the central bank, the Federal Reserve. Meanwhile, among other things, the labor market continued to be strong in the face of several interest rate hikes.

The good news is that the economy is in good shape. The bad thing is that we don't need to cut interest rates, Andreessen sums up.

Recently, discussions about interest rates in the United States have primarily revolved around the date of the first rate cut. The market has already written off the first rate cut in March, and is divided on whether there will be a cut in May, the chief economist says.

– Now it's almost June, Andreessen thinks.

High interest rate

In interest rate markets, there was a jump after the inflation numbers.

the important A ten-year-old AmericanA ten-year-old AmericanThe interest rate on government bonds with a maturity of ten years. It is often referred to as “the most important interest rate in the world,” because it affects interest rates and financial markets around the world. The interest rate rose to about 4.28 percent, after it was 4.15 percent immediately before the numbers were released.

Expectations for interest rate cuts have declined.

It now appears that there is about a 60% chance that the Fed will keep interest rates unchanged at its May meeting. CME's Fedwatch tool.

Technology stocks tend to be more negatively affected by rising interest rates and expectations that interest rates will remain high for longer, which is where future corporate profits lie. They can often have high debts.

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