US stocks plummet at opening bell as producer prices soar

By Ovunc Kutlu

ANKARA (AA) - US stocks plummeted at the opening Thursday, suffering significant losses as producer prices soared in June.

The blue-chip Dow was down 604 points, or 1.97% to 30,170 at 9.44 a.m. EDT. The S&P 500 fell 71 points, or 1.88%, to 3,730.

The tech-heavy Nasdaq was off 191 points, or 1.71%, to 11,055.

Annual producer inflation rose 11.3% in June, much higher than estimates of 10.7%, according to the Labor Department.

The VIX volatility index, also known as the fear index, rose 4.6% to 28.06. The 10-year US Treasury yield increased 3.8% to 3.017%.

The dollar index soared 1.2% to 109.22, posting a new 20-year record. The euro fell to as low as $0.9952 against the dollar.

Precious metals were on the decline with gold losing 2.1% to $1,698 and silver falling 5.2% to $18.22 -- its lowest in a year.

Global oil benchmark Brent crude was flat at $95.01 per barrel for a 4.5% loss, while US benchmark West Texas Intermediate (WTI) was at $91.30 -- down 5.2%.