Reserve

April

<p>The flagship indices of Wall Street, the S&amp;P 500 and the Nasdaq Composite, reached new heights this Wednesday, galvanized by a reassuring report on US inflation. The Cac 40, on the other hand, failed to join in the prevailing euphoria, narrowly missing out on equalling its record.</p>
<h2 id="h-us-inflation-reassures-wall-street">US inflation reassures Wall Street</h2>
<p>April’s <a href="https://www.cointribune.com/en/bitcoin-and-endless-inflation/" rel="noopener noreferrer nofollow">US inflation</a> data pleasantly surprised investors. Consumer prices rose by only 0.3%, which is one-tenth of a point lower than expected, and 3.4% year-on-year, in line with expectations. Excluding food and energy, prices increased by 3.6% annually, the lowest level since April 2021.</p>
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<p>This lull on the inflation front was welcomed by US markets. The S&amp;P 500 and the <a href="https://www.cointribune.com/chute-nasdaq-bug-tradingview/" rel="noopener noreferrer nofollow">Nasdaq Composite</a> soared to new heights, gaining between 0.4% and 0.6%. Bond yields, meanwhile, fell, signaling a resurgence of optimism.</p>
<p>However, experts <a href="https://investir.lesechos.fr/marches-indices/les-points-bourse/de-nouveaux-records-tombent-a-wall-street-apres-une-inflation-americaine-sans-fausse-note-mais-le-cac-40-ne-se-joint-pas-a-la-fete-2094936" rel="noopener noreferrer nofollow">remind</a> that it will take more than a month of gains to convince the Federal Reserve to ease its monetary policy. The re-acceleration of services inflation excluding housing remains worrisome and could prompt the Fed to maintain high rates until September.</p>
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<h2 id="h-mixed-signals-on-consumption">Mixed signals on consumption</h2>
<p>Besides inflation, April’s retail sales disappointed, stagnating while analysts had expected a 0.4% increase. Excluding automobiles, gasoline, building materials, and food services, they even fell by 0.3%.</p>
<p>Nevertheless, economists are downplaying this downturn, attributing it to a compensatory effect after several months of strong consumption. They maintain their forecasts of solid household spending growth in the second quarter, despite the pressure of high <a href="https://www.cointribune.com/en/economy-the-fed-surprises-expectations-and-maintains-its-interest-rates/" rel="noopener noreferrer nofollow">interest rates</a>.</p>
<h2 id="h-rebound-in-europe-cac-40-lags-behind">Rebound in Europe, CAC 40 lags behind</h2>
<p>In Europe, the European Commission has revised down its inflation projections for 2024, now expecting 2.5% compared to 2.7% previously. GDP growth is confirmed at 0.8% this year and 1.4% next year.</p>
<p>On the corporate front, CGG soared by 20% after solid quarterly results, while Trigano fell by 9% despite increased profit, penalized by disappointing cash generation.</p>
<p>Despite Wall Street’s euphoria, the <a href="https://www.cointribune.com/bourse-le-spectre-de-la-fed-plane-sur-les-marches-le-cac40-en-chute-libre/" rel="noopener noreferrer nofollow">CAC 40</a> failed to break its own record this Wednesday. While the slowdown in US inflation is a good sign, caution remains given the conflicting signals sent by the economy. Investors will keep a close eye on upcoming indicators to gauge the markets’ trajectory in the months ahead.</p>

Stock Market: Controlled inflation, Wall Street soars, CAC 40 misses the mark

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