US stock market opens lower

Rise in inflation adds to pressure on the Fed to hike interest rates

By Ovunc Kutlu

NEW YORK (AA) - The stock market opened lower Thursday as rising inflation brought fears that the Federal Reserve is closer to a rate hike.

The consumer price index rose 0.4 percent in August, or 1.9 percent year-on-year, the Commerce Department announced earlier.

The annual level is getting closer to the Fed's 2 percent inflation target, and the bank may feel pressure to raise its benchmark interest rate on Sept. 20, according to experts.

With the fears that a rate hike now looks more likely, investors have taken a sell-off position in the stock market.

The Dow fell 8 points to begin trading at 22,149 points, and the S&P 500 lost 5 points to open at 2,492 points.

The Nasdaq decreased 26 points to start the day at 6,433 points.

Kaynak:

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