US stocks down despite easing in Fed's November inflation indicators

By Ovunc Kutlu

ISTANBUL (AA) – US stocks opened lower on Friday, heading for weekly losses, although the Federal Reserve's preferred inflation indicators softened in November.

The blue-chip Dow Jones industrial average fell 140 points, or 0.43%, to 32,887 at 9.50 a.m. EDT (1450GMT). The S&P 500 lost 17 points, or 0.44%, to 3,805.

The tech-heavy Nasdaq decreased 88 points, or 0.84%, to 10,388.

The indexes posted daily losses of more than 1% apiece on the previous session.

The personal consumption expenditures (PCE) price index rose 5.5% in November, but slowed down from the annual gain of 6.1% in October, the Commerce Department announced earlier. On a monthly basis, it increased just 0.1% in November, cutting pace from a 0.4% gain in October.

The core PCE price index, which excludes food and energy prices, rose 4.7% annually in November, also slowing down from 5% year-on-year gain in October. On a monthly basis, the figure showed a gain of 0.2% in November, also decelerating from a 0.3% increase in October.

Both indexes are closely watched by the Fed, and softening data could pave the way for the central bank to take its foot off the throttle in rate hikes early next year.

The VIX volatility index, also known as the fear index, rose 2.4% to 22.49. The 10-year US Treasury yield increased 2.1% to 3.749%.

The dollar index added 0.04% to 104.48, while the euro gained 0.12% to $1.0606 against the greenback.

Precious metals were mostly flat with the price of gold at $1,793 per ounce and silver at $23.61 an ounce.

Crude oil prices increased around 3%. Global benchmark Brent crude was up 3.3% to $83.68 per barrel. US benchmark West Texas Intermediate crude was around $79.79 – up 3%.