US stock market opens lower as consumer inflation hits new record

ANKARA

Major indices in the US stock market opened lower on Thursday as consumer inflation hit a new record-high level.

The Dow Jones fell 255 points, or 0.63%, to 35,543 at 9.39 a.m. EDT (1439GMT). The S&P 500 lost 33 points, or 0.73%, to 4,554.

The Nasdaq declined 167 points, or 1.16%, to 14,313.

Consumer prices in the US rose 7.5% year-on-year in January, marking the largest 12-month increase since February 1982, the US Department of Labor said earlier.

The consumer price index came above the market estimate of 7.3%, while it rose 7% in December.

Investors are worried that the US Federal Reserve makes faster and higher rate hikes this year to tame the record high inflation.

The Fed is expected with a 53.7% probability to make an interest rate increase of 25 basis points on March 16, while the probability of a 50 basis point rate hike in March stands at 46.3%.

The VIX volatility index soared 4.6% to 20.88, as the fear index refused to decline and has found strong support from the key level of 20.

With the expectation of faster and higher Fed rate hikes, the dollar index rose 0.31% to 95.79, and the yield on 10-year US Treasury notes jumped 3.1% to 1.988%.

Precious metals were mixed, with gold losing 0.1% to $1,831 per ounce but silver rising 0.5% to $23.44.

After recovering from a two-day loss, crude oil prices have continued their gains.

Brent crude was trading at $92.47 per barrel with a 1% gain, while US benchmark West Texas Intermediate was at $90.78 -- up 0.25%.