In this last session of the week Wall Street moves slightly higher, in the aftermath of new records for the S & P500. Shortly after launch, the Dow Jones index rose 0.24%, the S & P500 gained 0.15%, and the Nasdaq was slightly up with + 0.13%.
Sentiment held up yesterday, despite the publication of the US consumer price index, a fundamental thermometer of inflation, in May showing a surge equal to + 5% on an annual basis, beyond estimates, and at the new high since 2008. Boom also for the core component, up 3.8% on an annual basis, to a record in almost 30 years.
But both Wall Street and US Treasuries have shown that they have faith in the Fed and therefore in the assumption that the nature of inflationary pressures is transitory.
Confirming the fact that the US is not yet pricing in either the overheating of the US economy or the Fed’s tapering is the trend in ten-year Treasury rates, which remain negative at 1.44%.