Wall Street recorded its best session of the year and since November 11 (95% of shares in the green at close), following the publication of a US CPI in line with expectations, and even slightly better than expected in core data.

All indices closed at the zenith of the day and of the year 2025: the Dow Jones soared by 1.65%, the S&P500 climbed by 1.83% (towards 5,950) and the Nasdaq by 2.45%, above 19,500.950) and the Nasdaq by 2.45%, above the 19,500 mark. Of note: Tesla +8%, Microstrategy +5.4%, Meta +3.9%, Nvidia +3.6%.

Sector-wise, banks soared by +3%, semiconductor and consumer stocks by +2 to +2.3%, and networks by +1.7%.

Massive buybacks were triggered and rates suddenly eased by -12 to -14 basis points. The '10 yr US' fell from 4.79% to 4.655%, the '30 yr' from 4.985% to 4.88%, and the '2 yr' from 4.365% to 4.27%.

Investors are returning to a scenario of two Fed rate cuts, in June (65%) and December (almost 50%).

Inflation thus reassured: the US consumer price index rose (as expected) by 2.9% in December 2024 compared with the same month in 2023, an annual rate up 0.2 points on November.

Excluding energy (-0.5%) and food (+2.5%), two traditionally volatile categories, the underlying annual inflation rate came out at 3.2% last month, a level slightly below economists' consensus.

On a sequential basis, i.e. between November and December 2024, US consumer prices rose by 0.4% unadjusted and by 0.2% excluding energy and food

In addition, economic activity declined in New York State in January, according to companies responding to the Empire State Manufacturing Survey. The general index of economic conditions fell by fifteen points to -12.6.

New orders fell slightly, while shipments were virtually unchanged.

Meanwhile, labor market indicators showed stable employment levels, but a decline in the average length of the working week. Increases in input and selling prices accelerated.

Companies were more optimistic that conditions would improve in the months ahead.

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