Wall Street Opens Higher on JPMorgan Data and US Inflation

The stock exchanges in New York opened on Wednesday with price gains. Investors on Wall Street processed quarterly results of, among others, the large American bank JPMorgan Chase. There were also figures on inflation in the United States, which rose further in September.

 

Inflation plays an essential role in the interest rate policy of the US central bank umbrella Federal Reserve.

Shortly after opening, the Dow-Jones index recorded a plus of 0.1 percent at 34,418 points. The broad S&P 500 rose 0.3 percent to 4364 points, and the technology exchange Nasdaq rose 0.6 percent to 14,552 points.

JPMorgan Chase, the largest bank in the US, saw profits rise in the past quarter compared to a year earlier. More money was mainly made by advising on mergers, acquisitions and IPOs of companies. However, investors may have hoped for more, as the stock fell 1.4 percent. Quarterly publications from major industry peers such as Citigroup, Bank of America, Goldman Sachs and Wells Fargo will also be released later this week.

The largest asset manager BlackRock also opened the books and was moved 3 percent higher. Airline Delta Air Lines has closed a profitable quarter for the first time since the start of the corona crisis, excluding government support for the company. However, the company warned of high fuel prices, leading to red figures in the fourth quarter. Delta lost 3.2 percent.

Inflation in the US rose to 5.4 percent year-on-year in September, from 5.3 percent in August. This is partly due to rising fuel and food prices. As a result, the Fed may be more inclined to reduce corona support measures for the economy to curb rising inflation. The central bank has already indicated that it wants to start phasing out its monthly bond-buying program this year.

Apple (minus 0.7 percent) could also count on attention. The tech group is planning to cut production of the new iPhone 13 due to global chip shortages. Sources told the Bloomberg news agency that Apple would like to reduce production by as much as 10 million units, citing chip companies Broadcom and Texas Instruments that are struggling to supply enough components.

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