The Dow Jones fell 0.26% to 34,220.36 points and the Nasdaq fell 0.30% to 13,371.57 points.
The New York Stock Exchange, which had started the session well on Tuesday despite high US inflation, ended in the red before the start of the publication of corporate results.
According to final results at the close, the Dow Jones index, which had gained more than 1% in the morning, ended down 0.26% at 34,220.36 points.
The technology-dominated Nasdaq fell 0.30% to 13,371.57 points and the S&P 500 fell 0.34% to 4,397.45 points.
Inflation in the United States soared to 8.5% year on year in March, the highest since December 1981, according to the CPI index published before the opening of Wall Street.
In an initial optimistic reaction, investors focused on the core inflation index, excluding energy and food prices, which, over the month only rose by 0.3%, i.e. less than expected.
It was gasoline prices, at +18.3% over one month alone, which drove the rise, but analysts expect an improvement to come.
Stock market indices rose sharply until mid-session before slowly reversing their course.
“Markets were moving forward this morning because while headline inflation was strong, underlying prices were weaker than expected,” commented Peter Cardillo of Spartan Capital.
“Some thought that meant we might see inflation peaking this summer,” he added.
Bond rates eased to 2.71% from 2.78% the previous day and the dollar even fell for part of the day, despite this level of inflation not observed for forty years in the United States.
On the foreign exchange market, the greenback then regained momentum to end at its highest since May 2020 once morest the major currencies.
Same pendulum movement observed on the New York square: “the stock market was up most of the day then it turned around,” noted Peter Cardillo.
“I suspect that investors have taken money off the table as we approach the start of the earnings season with the banks on Wednesday,” added the analyst, noting that bank stocks plunged at the end of the session. .
JPMorgan Chase, whose first quarter results are expected on Wednesday, fell 1.13% to 131.50 dollars. Expected Thursday, Citigroup dropped 0.49% and Goldman Sachs 0.36%.
For Kathy Lien, of BK Asset Management, the markets, first interested in “underlying inflation deemed rather benign, then focused on the fact that the American Central Bank (Fed) made it clear that it was going to drastically raise rates next month.
Shares of energy companies rose in the wake of rising crude prices, such as Occidental Petroleum (+2.11%) and Devon Energy (+3.70%).
The big names in the tech sector, up in early trading, had mixed fortunes: Tesla and Apple gained more than 1% but Facebook (Meta) and Netflix lost as much.
American Airlines rose 0.94% following an upward revision to its revenue forecast. But the airline has also raised its fuel cost forecasts.
Used-car sales chain CarMax plunged 9.59% to $93.28 following reporting lower-than-expected earnings and lower sales volume.