Wall Street opens lower after hot inflation data fuels rate-hike bets
Wall Street's main indexes opened lower on 14 October after a hotter-than-expected inflation report increased the likelihood of an interest rate hike this month. Investors also parsed earnings from major banks. The Dow, S&P 500, and Nasdaq all fell at the opening bell.
Wall Street's main indexes opened lower on Wednesday after a hotter-than-expected inflation report boosted bets of an interest rate hike this month, while investors parsed more big bank earnings.
The Dow Jones Industrial Average fell 85.11 points, or 0.16 per cent, at the open to 51,584.99. The S&P 500 fell 31.3 points, or 0.40 per cent, at the open to 7,774.18, while the Nasdaq Composite dropped 172.7 points, or 0.63 per cent, to 27,031.64 at the opening bell.
The data fuelled expectations that the Federal Reserve could raise rates at its meeting later this month. Traders and analysts had been closely watching inflation figures for signs of whether the central bank would maintain its tightening stance.
Alongside the inflation news, investors were also digesting the latest quarterly results from several of the country's largest banks. The earnings reports added another layer of complexity to the market's assessment of the economic outlook.
The declines at the open reflected a cautious mood on trading floors, with the technology-heavy Nasdaq suffering the steepest percentage drop among the three major indices.