US stocks open lower as producer inflation comes higher than expected

By Ovunc Kutlu

ANKARA (AA) - US stocks opened lower on Wednesday as producer inflation in September came higher than market estimates.

The Dow Jones fell 82 points, or 0.28%, to open at 29,157 at 9.34 a.m. EDT. The S&P 500 declined 12 points, or 0.36%, to 3,576.

The Nasdaq declined 39 points, or 0.47%, to 10,387 – a new two-year low.

Annual producer inflation in the US rose 8.5% in September, according to Labor Department figures released earlier. Although the latest figure showed a slowdown from August's 8.7% increase, it came in slightly higher than the market estimate of an 8.4% gain.

The VIX volatility index, also known as the fear index, increased 1.4% to 34.10. The 10-year US Treasury yield rose 0.5% to 3.958%.

The dollar index rose 0.1% to 113.31, hovering near its highest level in 20 years, while the euro was flat at $0.9705 against the greenback.

Precious metals were mixed, with gold rising 0.25% to $1,670, but silver falling 0.65% to $19.03.

Oil prices were on the decline with weak demand worries amid recession fears. Global oil benchmark Brent crude was trading at $93.25 per barrel for a 1.1% loss. US benchmark West Texas Intermediate was around $88.12 – down 1.4%.