U.S. stock opened lower on Friday after the latest wholesale inflation report came in hotter than anticipated, reviving concerns that the Federal Reserve may still have to raise interest rates further to bring down inflation. The Dow Jones Industrial Average DJIA, +0.30% dropped 72 points, or 0.2%, to 35,104, while the S&P 500 SPX, -0.11% lost 0.5% and the Nasdaq Composite COMP, -0.68% was off 0.8%. The U.S. producer price index rose 0.3% in July, the Labor Department said Friday, up from a revised flat reading in June and the largest gain since January. The core producer price index, which excludes prices of volatile food, energy and trade services, rose 0.2 in July, up from a 0.1% advance in the prior month. Yield on the policy-sensitive 2-year Treasury note TMUBMUSD02Y, 4.892% climbed 2 basis points to 4.88% on Friday morning. With only one trading day left in the week, the S&P 500 is on pace to book a 0.6% of weekly decline, and the Nasdaq has fallen 1.9%. The Dow industrials eked out a 0.1% weekly gain, according to FactSet data.
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