US stocks open lower after producer prices show gains

By Ovunc Kutlu

ISTANBUL (AA) - US stock exchanges opened lower on Thursday, after figures showed that producer prices in February showed both monthly and annual gains.

The Dow Jones was down 77 points, or 0.2%, to 38,965 at 9.51 a.m. EDT (1351GMT). The S&P 500 fell 16 points, or 0.31%, to 5,149.

The Nasdaq, meanwhile, decreased 50 points, or 0.31%, to 16,127 at the time.

US producer inflation in February rose 1.6% annually and 0.6% on a monthly basis, as both figures came above market estimates of 1.1% and 0.3%, respectively, according to the Labor Department figures released earlier.

Rising inflation figures indicate that the Federal Reserve's first interest rate cut could be delayed beyond the expectation of June this year.

The VIX volatility index, also known as the fear index, rose 2.4% to 14.08. The 10-year US Treasury yield added 2% to 4.275%.

The dollar index increased 0.26% to 103.06, while the euro lost 0.3% to $1.0911 against the greenback.

Precious metals were mixed, with gold losing 0.6% to $2,162 per ounce and silver increasing 0.05% to $25.02.

Oil prices were up around 1%, with global benchmark Brent crude at $84.73 per barrel and US benchmark West Texas Intermediate crude at $80.66.