(Reuters) – The New York Stock Exchange opened lower on Wednesday amid inflation fears and ahead of the release of new services sector data and a key report on the state of the U.S. economy, with investors looking clues on the next decisions of the Federal Reserve (Fed).
In early trading, the Dow Jones index lost 95.18 points, or 0.27% to 34,546.79 points and the broader Standard & Poor’s 500 fell 0.28% to 4,484.39 points.
The Nasdaq Composite lost 0.27% or 37.18 points to 13,983.77 points.
Rising Treasury yields and oil prices above $90 on Tuesday hurt equity markets as oil supply cuts from Saudi Arabia and Russia are seen as likely increase inflationary pressures.
“This could force the Fed to keep interest rates higher for longer, which helps weaken the more comfortable view that the path of rates is changing,” said Russ Mould, chief investment officer at AJ Bell in a note.
Investors are also awaiting the release of the monthly S&P Global Purchasing Managers Survey and the ISM Services Index at 3:45 p.m. and 4:00 p.m. respectively, where they will be watching for signs of slowing inflation.
They will also focus on the Fed’s Beige Book, due at 8:00 p.m., for a snapshot of the US economy that could provide additional clues about the central bank’s plans.
In values, Apple dropped 0.59% as the Wall Street Journal (WSJ) reported on Wednesday that China has banned its state officials from using an Apple iPhone at work.
Video streaming company Roku, which will cut its workforce by around 10% and limit new hires, is climbing 12%.
(Written by Diana Mandiá, edited by Blandine Hénault)
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