S&P 500 slips 0.50% at the open after October US inflation data

The S&P 500 traded at 7512.39 at 9:45 a.m. in New York on Nov. 10, down 0.50% from the previous close. The move came after the release of October US inflation data.

What happened

The S&P 500 stood at 7512.39, a drop of 37.55 points from the previous close of 7549.94. The Nasdaq 100 stood at 27738.3, down 169.33 points or 0.61% from 27907.62. Both indexes were lower fifteen minutes after the opening bell.

The CBOE Volatility Index stood at 20.61, up 0.69 points or 3.46% from 19.92 at the previous close.

The US inflation report for October came out at 13:30 UTC. The monthly inflation rate was 0.4%, against a 0.3% estimate and a previous reading of 0.6%. Core inflation rose 0.3% on the month, against a 0.2% estimate, and matched the previous reading of 0.3%.

The CPI index stood at 337.51, against an estimate of 337.02 and a previous 336.94. The seasonally adjusted CPI was 337.48, against an estimate of 337 and a previous 336.3.

Why it matters

The Nasdaq 100 fell 0.61%, a slightly larger drop than the 0.50% decline of the S&P 500. The VIX moved above the 20 mark, at 20.61, from 19.92 at the previous close.

The headline monthly rate of 0.4% was lower than the 0.6% of the previous reading, while the core monthly rate was unchanged at 0.3%. The index levels of both CPI series are higher than the previous values in the pack. For investors, the session opens with the equity indexes lower and the volatility gauge higher while the market takes in the inflation numbers.

What to watch next

The calendar lists two annual figures from the same October report that were not yet published in the data at 9:45 a.m. The core inflation rate on a yearly basis has an estimate of 2.8%, against a previous 2.6%. The headline inflation rate on a yearly basis has an estimate of 3.9%, against a previous 3.7%.

These two readings will complete the picture of October consumer prices. The session at the New York Stock Exchange runs until 4:00 p.m. New York time, and the indexes will show where they settle against the previous closes of 7549.94 for the S&P 500 and 27907.62 for the Nasdaq 100.