US stocks lose ground to open December

Stocks fell in mixed trade on Wall Street on Thursday and bond yields eased after the government reported that a measure of inflation closely watched by the Federal Reserve fell in October.

The S&P 500 fell 0.5% at 10:19 am ET. The benchmark index was roughly split between winners and losers, but some big tech stocks weighed on the broader market.

Salesforce plunged 10.4% as Bret Taylor said he would step down as co-CEO of the customer management software developer.

The Dow Jones Industrial Average fell 335 points, or 1%, to 34,236 and the Nasdaq rose 0.6%.

The major indices are coming off their second straight month of gains.

Short-term and long-term bond yields fell. The 10-year Treasury yield, which influences mortgage rates, dipped to 3.60% from 3.61% late Wednesday.

Investors are reviewing the latest update on inflation. An inflation measure that is closely monitored by the Fed was relaxed in October. Wall Street has been closely watching any updates on inflation to get a better idea of ​​whether the Fed will tone down its aggressive interest rate hikes.

The central bank has been deliberately slowing the economy to tame stubbornly hot inflation. Prices have been falling, but remain historically high.

Fed Chairman Jerome Powell said on Wednesday that the central bank could start easing its pace of rate hikes as early as December, when its policymaking committee will hold its next meeting. The Fed, however, has been very clear about its intention to keep raising interest rates until it is sure that inflation is cooling off.

The Fed has raised its benchmark rate six times since March, bringing it to a range of 3.75% to 4%, the highest in 15 years. Wall Street expects the same, expecting the benchmark rate to hit a range-high of 5% to 5.25% by mid-2023.