The three major U.S. stock indices opened lower as they digested the August Producer Price Index (PPI).

As of 9:53 a.m. (local time) on the 10th, the Dow Jones Industrial Average at the New York Stock Exchange was down 224.24 points (0.43%) from the previous session at 52,156.42.

The S&P 500 index fell 49.12 points (0.64%) to 7,587.24, and the Nasdaq Composite index dropped 212.04 points (0.81%) to 26,041.30.

Investor sentiment dampened as the U.S. August PPI showed a steeper upward trajectory compared to the previous month.

According to the U.S. Department of Labor, the August PPI rose 0.4% on a seasonally adjusted basis from the previous month.

While it met market expectations, the upward slope steepened compared to a 0.1% decline in June and a 0.1% increase in July.

High U.S. Treasury yields also weighed on the stock market.

The previous day, the U.S. Treasury Department's decision to set the size of its long-term bond buyback at $6 billion caused disappointment, and U.S. President Donald Trump's remark that he would pay $5,000 per person to all adult citizens if he wins the November election drove Treasury yields higher.

With the August PPI coming in hot as well, the 10-year U.S. Treasury yield rose to 4.935% during the session, marking its highest level since October 2023.

The 30-year U.S. Treasury yield also surpassed 5.35%, hitting its highest level since June 2007.

In addition, ongoing conflicts between the U.S. and Iran pushed West Texas Intermediate (WTI) crude oil futures for October delivery past $100, following Brent crude futures, acting as a downward pressure on the stock market.

During the session, WTI crude for October delivery rose as high as $100.88.

Staphane Coltman, macro head at 21Shares, explained, "The PPI release itself didn't really help decide whether the Fed will raise rates," adding, "However, WTI oil prices rising back above $100 a barrel and Treasury yields hitting new highs are increasing risk burdens for investors ahead of the CPI report."

Looking by sector, consumer staples and healthcare advanced, while all other sectors showed a downward trend.

Energy infrastructure company Enbridge saw its shares fall 3.53% after announcing it would acquire Tallgrass Energy's crude oil pipeline business for $2.55 billion.

Shares of copper miner Freeport-McMoRan dropped 7.49%.

As copper futures declined after hitting a record high the previous day, shares of copper mining companies also fell together.

Southern Copper also fell 6.40%.

Medical retailer American Eagle Outfitters saw its shares plunge 13.22% following its earnings release.

American Eagle announced that its second-quarter same-store sales decreased by 1%.

This decline was larger than the market expectation of 0.6%.

European stock markets showed a unified downward trend.

The Euro Stoxx 50 index was trading down 0.67% at 6,268.98.

The UK's FTSE 100 index and France's CAC 40 index fell 0.36% and 0.26%, respectively.

Germany's DAX index dropped 0.54%.

International oil prices rose.

At the same time, front-month WTI crude oil for October 2026 delivery was trading up 3.59% from the previous session at $99.50 per barrel.

(Photo: Getty Images)