Economy

US stocks open lower with PCE price index rising

Amazon shares plummet 6.9%

Ovunc Kutlu   | 30.07.2021
US stocks open lower with PCE price index rising FILE PHOTO

ANKARA

US stock market opened lower Friday with personal consumption expenditures (PCE) price index showing an increase in June.

The Dow Jones was down 8 points to 35,076 at 9.55 a.m. EDT, while the S&P 500 fell 12, or 0.3%, to 4,407 with general Electric sliding 1.1%.

The Nasdaq declined 80 points, or 0.54%, to 14,698 as Amazon shares plummeted 6.9% as revenue increase came less than the same period of last year.

The e-commerce firm announced late Thursday its revenue rose 27.2% in the second quarter, which came much lower than the 41% increase in the second quarter of 2020.

The yield on 10-year US Treasury notes decreased 2.1% to 1.242, and the VIX volatility index, known as the fear index, was down 0.8% to 17.55.

The dollar index, on the other hand, was up 0.1% to 91.96.

Precious metals reversed course from the previous day's gains as gold fell 0.2% to $1,824 per ounce and silver was flat at $25.5.

PCE price index, the Federal Reserve’s preferred inflation indicator, increased 0.5% in June. Core PCE price index, excluding food and energy, rose 0.4% from the previous month. Year-on-year, they were up 4% and 3.5%, respectively.

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