US stocks open lower after higher inflation figures

By Ovunc Kutlu

ISTANBUL (AA) - Major stock exchanges in the US opened lower on Wednesday as consumer inflation figures came in higher than estimates in March on both an annual and monthly basis.

The Dow Jones was down 487 points, or 1.25%, to 38,396 at 9.56 am EDT (1356GMT). The S&P 500 fell 52 points, or 1%, to 5,158.

The Nasdaq, meanwhile, lost 146 points, or 0.9%, to 16,160.

Annual consumer inflation in the US rose 3.5% in March, and was up monthly 0.4%, both coming in above market expectations, according to figures released earlier by the Bureau of Labor Statistics.

Core CPI, which excludes volatile food and energy prices, climbed 0.4% monthly and 3.8% annually in March, both also coming in above market estimates.

The VIX volatility index, also known as the fear index, jumped 8.1% to 16.19. The 10-year US Treasury yield rose 3.24% to 4.502%.

The US dollar index increased 0.86% to 105.05, while the euro declined 1% to $1.0750 against the greenback.

Precious metals showed losses, with gold trimming 0.55% to $2,339 per ounce and silver dropping 0.5% to $28.01.

Oil prices were on the rise, with global benchmark Brent crude adding 0.4% to $89.77 per barrel and US benchmark West Texas intermediate crude up 0.3% to $85.48.