(Reuters) – The New York Stock Exchange opened lower on Tuesday as higher Treasury yields weighed on growth stocks, as data on services activity in China reignited concerns about demand in the world’s second largest economy.

In early trading, the Dow Jones index lost 12.72 points, or 0.04%, to 34,824.99 points and the broader Standard & Poor’s 500 fell 0.11% to 4,510.88 points.

The Nasdaq Composite lost 0.24%, or 34.06 points, to 13,997.76 points.

The yield on 10-year US Treasury bills rose more than 6 basis points to 4.234% while that of two years rose more than 4 basis points to 4.9137%.

Markets are notably awaiting the consumer price index next week, as well as the Federal Reserve (Fed) rate decision on September 20, as economic data released since the July meeting has reinforced the impression that the US economy is cooling without cracking, which reinforces the arguments against further monetary tightening in September.

Goldman Sachs has also reduced the probability of a recession in the US economy over the next 12 months by 20% to 15%, as inflation continues to slow and the job market remains solid.

However, market sentiment remains weighed down by figures from China’s service sector, which grew in August at the slowest pace in eight months. These data bear witness to the weakness of demand in the world’s second largest economy and the inability of stimulus measures to significantly stimulate consumption.

On the day’s agenda, investors await data on US industrial orders at 2:00 p.m. GMT.

In values, the shares of the main technology groups, such as Apple and Meta lost around 0.6% at the opening, under the pressure of rising yields.

On the winners side, Oracle gains 0.8%, helped by the increase in recommendation by Barclays, while Airbnb and Blackstone, which will enter the S&P-500 index, respectively progress by 7.7 % and 3.6%.

(Written by Diana Mandiá, edited by Blandine Hénault)

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