US stocks open lower despite consumer prices down

By Ovunc Kutlu

ISTANBUL (AA) - Major US stock exchanges opened on a lower note Wednesday despite annual consumer inflation showing a significant slowdown in August.

The Dow Jones industrial average fell 452 points, or 1.1%, to 40,283 as of 9.55 a.m. EDT (1355GMT). The S&P 500 was down 34 points, or 0.62% to 5,460.

The Nasdaq Composite, meanwhile, decreased 10 points, or 0.06%, to 17,014.

Consumer inflation in the US rose 2.5% annually in August, marking the slowest annual increase since February 2021, according to data by the Labor Department's Bureau of Labor Statistics before the market opening.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, showed a significant slowdown from a year-on-year increase of 2.9% in July.

The decline in stocks came as annual core inflation in August showed acceleration from the previous month.

Core CPI, which excludes volatile food and energy prices, gained 0.3% in August from the previous month, coming in higher than estimates of 0.2% and slightly gaining pace from the 0.2% increase in July.

The VIX volatility index, referred to as the "fear index," rose 2.4% to 19.57. The 10-year US Treasury yield rose 0.03% to 3.645%.

The US dollar index increased 0.1% to 101.72, while the euro lost 0.1% against the dollar, trading at $1.1010.

Precious metals were mixed with gold losing 0.3% to $2,509 per ounce but silver adding 0.2% to $28.45 per ounce.

Oil prices increased more than 1%, with global benchmark Brent crude at $69.89 per barrel and US benchmark West Texas Intermediate at $66.56 per barrel.