Wall Street’s main indices were hovering around stability on Friday (9), as a higher-than-expected rise in producer prices fueled fears that the Federal Reserve could maintain aggressive adjustments in interest rates for longer.
US producer prices rose 7.4% last month year-on-year, the Labor Department report showed, against economists’ expectations for a 7.2% rise. The increase was, however, lower than the 8% of October.
Core producer prices, which exclude volatile components such as food and energy, rose 6.2%, compared with estimates for a rise of 5.9%.
“It’s disappointing and shows that we’re stuck in the wheel of inflation and I’m not surprised to see the market sell off like it’s doing right now,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.
However, bets that the Fed will raise its benchmark interest rate by 50 basis points to a range of 4.25% to 4.50% next week remained broadly unchanged, as the report also showed that the underlying trend in inflation it was moderate.
Around 1 pm (Brasília time), the Dow Jones index had a positive variation of 0.01%, at 33,783.82 points. The S&P 500 rose 0.19% to 3,970.98 points, while the Nasdaq gained 0.01% to 11,083.15 points.
Source: CNN Brasil
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