US stocks open lower as inflation climbs higher

By Ovunc Kutlu

ANKARA (AA) - US stocks opened lower Wednesday as consumer inflation climbed higher.

Annual consumer inflation rose 9.1% in June, higher than estimates of 8.8%, according to the Labor Department.

Higher inflation could trigger more aggressive moves by the Federal Reserve, as the US central bank can now make an interest rate hike of 100 basis points July 27, higher than the rate increase of 75 basis points that the market anticipated before the numbers were released Wednesday.

The blue-chip Dow was down 245 points, or 0.8% to 30,734 at 9.54 a.m. EDT. The S&P 500 fell 30 points, or 0.8%, to 3,788.

The tech-heavy Nasdaq was off 94 points, or 0.84%, to 11,170.

The VIX volatility index, also known as the fear index, rose 3% to 28.10. The 10-year US Treasury yield increased 2.4% to 3.028%.

The dollar index soared 0.22% to 108.3, posting a new 20-year record. The euro fell to as low as $0.099 against the dollar.

Precious metals were on the decline with gold losing 0.1% to $1,724 and silver falling 0.5% to $19.03.

Global oil benchmark Brent crude was flat at $99.58 per barrel, while US benchmark West Texas Intermediate (WTI) was at $96.03 -- up 0.2%.