US stocks head lower after gain in consumer inflation

By Ovunc Kutlu

ISTANBUL (AA) - US stocks were heading lower Thursday after annual consumer inflation in September showed gains.

The Dow Jones was down 133 points, or 0.39%, to 33,672 at 10 a.m. EDT. while the S&P 500 lost 12 points, or 0.28%, to 4,364.

The Nasdaq fell 10 points, or 0.07%, to 13,646.

Annual consumer inflation in the US was at 3.7% in September, slightly higher than estimates of 3.6%, according to Labor Department figures. Core CPI, which excludes volatile food and energy prices, annually rose 4.1% in September.

Strong figures suggest that the US Federal Reserve would continue its monetary tightening cycle, keeping interest rates higher than previously expected.

The VIX volatility index, also known as the fear index, rose 0.8% to 16.22. The 10-year US Treasury yield added 1% to 4.640%.

The dollar index increased 0.46% to 106.30 while the euro lost 0.56% to $1.0558 against the greenback.

Precious metals were mixed, with gold adding 0.1% to $1,876 an ounce but silver losing 0.3% to $21.97.

Oil prices rose around 1.3%, with global benchmark Brent crude at $87.05 per barrel and US benchmark West Texas Intermediate at $84.57.