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S&P 500 opens muted as hot inflation data signals rates to stay on hold

BY Reuters | ECONOMIC | 09:34 AM EDT

May 13 (Reuters) - The S&P 500 was subdued at the open on Wednesday, as hotter-than-anticipated producer prices reinforced bets that the Federal Reserve would keep monetary policy restrictive all through this year.

The Dow Jones Industrial Average fell 86.0 points, or 0.17%, at the open to 49,674.58. The S&P 500 rose 8.2 points, or 0.11%, at the open to 7,409.12?, while the Nasdaq Composite rose 59.4 points, or 0.23%, to 26,147.646 at the opening bell.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Devika Syamnath)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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