US stocks down as gain in producer inflation triggers more Fed fears

US stocks down as gain in producer inflation triggers more Fed fears

Concerns of higher Fed rate hike renewed as producer inflation rises above market expectation

By Ovunc Kutlu

ISTANBUL (AA) - US stocks opened lower on Friday as producer inflation rising above the market estimate once again triggered fears that the Federal Reserve could announce a higher-than-anticipated rate hike next week.

The Dow Jones Industrial Average fell 96 points, or 0.3%, to 33,683 at 9.55 a.m. EDT (1455GMT).

Shedding 7.7 points, or 0.2%, the S&P 500 registered at 3,955. The Nasdaq was down 43 points, or 0.4%, to 11,037.

The S&P 500 and Nasdaq had closed higher on Thursday as the two indices ended days of decline due to worries of a steeper Fed rate hike.

Those fears, however, were renewed before market opening on Friday, when producer inflation showed annual gains of 7.4% in November, exceeding the market estimate of 7.2%.

The VIX volatility index, also known as the fear index, was up 2.5% at 22.85. The 10-year US Treasury yield increased 1% to 3.527%.

The dollar index rose 0.1% to 104.88, while the euro fell 0.2% to $1.0537 against the greenback.

Precious metals were up, with gold adding 0.5% to reach $1,798 per ounce and silver rising 1.1% to $23.31.

Crude oil prices were also in positive territory. Global benchmark Brent crude was trading at $76.78 per barrel for an increase of 0.8%, while US benchmark West Texas Intermediate crude was around $72.23, up 1.1%.

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