All the three main Wall Street indices opened in the red on Thursday, as S&P 500 was down 0.75% at 5,770.20 points at the opening bell and the tech-heavy Nasdaq Composite slumped 0.99% to 18,423.68.
The 30-stock Dow Jones Industrial Average opened 0.58% lower at 41,897.57.
The latest Personal Consumption Expenditures price index, released Thursday, indicated that inflation increased in line with expectations, edging closer to the Federal Reserve’s 2% target. The PCE is the Fed’s favored measure of inflation.
This PCE data, combined with the October payroll report set to be released on Friday, will guide the Fed’s interest rate decision during its two-day policy meeting concluding on Nov. 7.
Applications for US unemployment benefits dropped last week to their lowest level since May, as southeastern states continued to recover from the effects of two severe storms. Initial claims fell by 12,000 to 216,000 for the week ending Oct. 26.
Before the US market opened, its Asian peers settled on a low note. Hong Kong’s Hang Seng index fell 0.31%, Japan’s Nikkei 225 closed 0.50% lower, and India’s NSE Nifty 50 settled with 0.56% loss.
(This is a developing story.)
