Wall Street's three major indexes opened lower on the rise in August producer price index (PPI) and Government Bonds yields.
As of 10:19 a.m. on the 10th, the Dow Jones Industrial Average was down 251.98 points, or 0.48%, at 52,128.68 on the New York Stock Exchange. The Standard & Poor's (S&P) 500 was down 41.36 points, or 0.54%, at 7,595.00, and the Nasdaq composite was down 172.51 points, or 0.66%, at 26,080.83.
U.S. August PPI rose at a faster pace from the previous month, appearing to dent investor sentiment. August PPI rose 0.4% from the prior month on a seasonally adjusted basis. While it matched market expectations, some said the pace of price increases is picking up compared with a 0.1% drop in June and a 0.1% rise in July. PPI serves as a leading indicator for the consumer price index (CPI).
Higher U.S. Government Bonds yields also weighed on stocks. The Treasury Department said the previous day it would conduct a long-term Government Bonds buyback of up to $6 billion (about 8 trillion won), but that fell short of market expectations of $7 billion to $8 billion, pushing up Government Bonds yields.
A remark by U.S. President Donald Trump that, if he wins the November election, he would give $5,000 per adult citizen also lifted Government Bonds yields, and with August PPI rising that day, the 10-year U.S. Government Bonds yield climbed to as high as 4.935% intraday, the highest since October 2023. The 30-year U.S. Government Bonds yield also topped 5.35%, the highest since June 2007.
Rising Middle East tensions also weighed on stocks as West Texas Intermediate (WTI) October delivery followed Brent futures in topping $100.