US stocks lower at open as investors weigh inflation data

US stocks opened lower on Wednesday as investors weighed the latest inflation data and its potential impact on the Federal Reserve's monetary policy.

The Dow Jones Industrial Average fell 0.5%, the S&P 500 dropped 0.4%, and the Nasdaq Composite was down 0.2% at the opening bell.

Investors are closely watching the latest consumer price index (CPI) data, which showed a 0.9% increase in May, the largest jump since 2008. The sharp increase in inflation has raised concerns about the Fed potentially tightening its monetary policy sooner than expected.

Tech stocks were among the biggest losers in early trading, with shares of Apple, Amazon, and Microsoft all down more than 1%.

Meanwhile, investors are also keeping an eye on the latest developments in the labor market, with the weekly jobless claims report due on Thursday.

Despite the early losses, some analysts remain optimistic about the outlook for stocks, citing strong corporate earnings and the reopening of the economy.

"Stocks are likely to remain volatile in the near term as investors digest the latest economic data, but the overall trend remains positive," said one analyst.