US stocks open lower after two-day rally

New York, Aug 28 (IANS) US stocks opened lower on Friday after a two-day market rally, as global financial volatility continued to weigh on investors’ sentiments.

Major indexes in the US all experienced a downward slide Friday morning, with the Dow Jones Industrial Average losing 55.86 points (0.34 percent), to 16,598.91, the S&P 500 dropping 3.62 points (0.18 percent), to 1,984.04, and the Nasdaq Composite Index down 5.56 points (0.12 percent), to 4,807.14.

Meanwhile, Chinese stocks recovered more than 10 percent in two days after a five-day losing streak that wiped out a fifth of the market value.

The benchmark Shanghai Composite Index climbed 4.82 percent to close at 3,232.35 points on Friday, following a 5.34-percent rebound the previous day.

But European trade was cautious on Friday with markets opening slightly lower as investors remained prudent.

On the economic front, personal income in the United States increased 0.4 percent in July while disposable personal income rose 0.5 percent, the US Commerce Department announced on Friday.

The same month has also seen the world’s largest economy’s personal consumption expenditures increase 0.3 percent after an upwardly revised 0.3 percent rise in June.

Investors will also keep a close eye on the University of Michigan’s final August reading of consumer sentiment index due later Friday.

Some analysts said recent data point to a possible interest rate hike this year.

The US Commerce Department on Thursday revised its estimate for the real gross domestic product (GDP) in the second quarter to a growth of 3.7 percent, which is much higher than the 0.6-percent growth in the first quarter and which triggered a jump in US stocks that day.