US stocks dive as inflation triggers fear of Fed rate hike

US stocks dive as inflation triggers fear of Fed rate hike

Nasdaq plummets 312 points, or 3%

By Ovunc Kutlu

ANKARA (AA) - US stocks dove at the opening bell Thursday with higher-than-expected consumer inflation numbers, triggering worries that the Federal Reserve will not pause rate hikes any time soon to lower inflation.

The Dow Jones fell 492 points, or 1.7%, to open at 28,718 at 9.38 a.m. EDT. The S&P 500 was off 77 points, or 2.2%, to 3,498.

The Nasdaq plummeted 312 points, or 3%, to 10,104 -- a new two-year low.

US annual consumer inflation came in at 8.2% in September, slightly easing from the 8.3% yearly gain in August, according to Labor Department figures. The figure is higher than estimates of an 8.1% annual increase.

The Fed has increased its benchmark interest rate by a total of 300 points since March to tame record inflation that is still hovering around its highest level in more than 40 years.

The US central bank is expected to make another rate hike of 75 basis points in November, followed by an additional increase of 50 basis points in December.

Shortly after markets opened, the VIX volatility index, also known as the fear index, was down 0.54% to 33.39. The 10-year US Treasury yield rose 4.07% to 4.061%.

The dollar index rose 0.34% to 113.71, still around its highest in 20 years, while the euro fell 0.5% to $0.9660 against the greenback.

Precious metals were on the decline, with gold shedding 1.4% to $1,649 and silver falling 2.3% to $18.58.

Oil prices were also down with weak demand worries amid recession fears due to the Fed's aggressive monetary tightening.

Global oil benchmark Brent crude was trading at $91.69 per barrel for a 0.8% loss. US benchmark West Texas Intermediate was around $86.08 – down 1.3%.



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