US stock mixed after US Fed's inflation indicator softens

By Ovunc Kutlu

ISTANBUL (AA) — US stocks opened Friday mixed after figures showed that the Federal Reserve's preferred inflation indicator softened in December.

The S&P 500 was down just two points, or 0.05%, to 4,892 at 9.50 a.m. EDT (1450GMT). The tech-heavy Nasdaq declined 23 points, or 0.15%, to 15,487.

The Dow Jones, on the other hand, increased 36 points, or 0.1%, to 38,085.

The Fed's preferred inflation indicator, the core personal consumption expenditures (PCE) price index, rose 2.9% annually in December, down from the 3.2% year-on-year gain in November, and came in lower than the market expectation of 3%.

The softening in the core PCE price index on an annual basis could allow the central bank to begin interest rate cuts earlier than anticipated this year.

The VIX volatility index, also known as the fear index, rose 0.9% to 13.58. The 10-year US Treasury yield rose 0.56% to 4.155%.

The dollar index decreased 0.3% to 103.27, while the euro added 0.2% to $1.0867 against the greenback.

Precious metals were in negative territory with gold losing 0.05% to $2,020 per ounce and silver trimming 0.6% to $22.76.

Oil prices were mixed, with global benchmark Brent crude flat at $82.44 per barrel and US benchmark West Texas Intermediate crude decreasing 0.2% to $77.18.