US stocks opened lower on Thursday as investors weighed hotter-than-expected producer inflation data, raising fresh concerns about the outlook for interest rates.
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all moved down in early trading as markets reacted to figures showing prices received by US producers rose 0.4% in August from the previous month.
The US Bureau of Labor Statistics said producer prices were up 5.4% over the year, accelerating from a 4.7% annual increase in July. The rise marked a renewed sign of pressure in the pipeline for consumer prices.
Goods prices climbed 1.1% during the month, while prices for services increased 0.1%. A measure excluding food, energy and trade services rose 0.3% in August and was 4.7% higher than a year earlier.
The data came as investors assessed whether persistent inflation could limit the Federal Reserve’s scope to reduce borrowing costs. Higher interest rates tend to weigh on equity valuations, particularly in growth-focused technology stocks.
Wall Street is also awaiting the latest US consumer price figures, due on Friday, which are expected to provide another indication of the direction of inflation and the likely path of Federal Reserve policy.
