U.S. stocks open lower, extending sell-off
U.S. stocks opened lower on Thursday, extending the market sell-off in the previous session where all three indices plunged more than 3 percent.
Shortly after the opening bell, the Dow Jones Industrial Average decreased 36.44 points, or 0.14 percent, to 25,562.30. The S&P 500 was down 2.92 points, or 0.10 percent, to 2,782.76. The Nasdaq Composite Index fell 2.05 points, or 0.03 percent, to 7,420.00.
Traders work at the New York Stock Exchange in New York, the United States, Oct. 10, 2018. [Photo: Xinhua]
The consumer price index (CPI) rose 0.1 percent in September, well below the expected gain of 0.2 percent, according to the Labor Department on Thursday.
The index for all items less food and energy, or the core-CPI, rose 0.1 percent in September, the same increase as in August.
The weaker-than-expected report was part of the reason why U.S. Treasury yields edged down. The benchmark 10-year Treasury note yield traded at 3.18 percent in early trading, down from 7-year high of 3.26 percent on Tuesday.
Investors have been grappling with rising rates for about a week amid robust economic data and signs of inflation.
The unemployment rate declined to 3.7 percent in September, lowest in 49 years, according to the Labor Department on Friday.
Average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents to 27.24 U.S. dollars. Over the year, average hourly earnings have increased by 73 cents, or 2.8 percent.
The report reinforced the view that the labor market is near full employment and wages have risen.
Fed Chair Jerome Powell last week said that the U.S. central bank had a long way to go before interest rates hit neutral, indicating that more hikes could be on the horizon.
The rise in yields has stoked fears that rising borrowing costs could slow down the economy and affect future monetary policy.
In the meantime, investors expect the upcoming earnings season could lift the market up.