Wall Street opens lower; European markets slip on rate news

NEW YORK — Stocks are opening lower on Wall Street today, putting major indexes into the red for the week.

The S&P 500 was down 0.5%, the Dow was down 0.4% and the Nasdaq was off 0.8%.

European markets were posting bigger declines after the European Central Bank said it would start raising interest rates next month for the first time in more than a decade. That would bring Europe’s policymakers in line with other central banks like the Federal Reserve in the U.S. in making a turn away from supporting the economy with low interest rates and toward fighting inflation with higher interest rates.

European shares declined in early trading as France’s CAC 40 slipped 0.5% in midday trading while Germany’s DAX dropped 0.9%. Britain’s FTSE 100 fell 0.7%.

Markets are bracing for more inflation data Friday when the U.S. releases its latest reading on the consumer price index. Inflation eased slightly in April after months of relentless increases, but at 8.3%, remained near a four-decade high.

The Federal Reserve is widely expected to raise its key short-term interest rate by half a percentage point at its meeting next week. That would be the second straight increase of double the usual amount by the U.S. central bank, and investors expect a third in July.