US stocks close higher as Fed vows stronger stance against inflation

By Ovunc Kutlu

ANKARA (AA) - US stocks closed higher Wednesday as the Federal Reserve vowed a stronger stance to fight record inflation.

The central bank said it supports a more restrictive stance in its monetary policy if inflation persists, according to minutes released from its last meeting on June 15.

While the Fed increased its benchmark interest rate by 75 basis points in June, the minutes showed that bank officials indicated it would be appropriate to make an increase of 50 or 75 basis points at the next meeting that will conclude July 27.

The Dow was up 69 points, or 0.22% to close at 31,037. The S&P rose 13 points, or 0.36%, to 3,845.

The Nasdaq added 39 points, or 0.35%, to finish at 11,361.

The VIX volatility index, also known as the fear index, fell 2.1% to 26.96.

The dollar index increased 0.5% to 107.07 after soaring to a 20-year high of 107.15.

The 10-year US Treasury yield reversed course and gained 4.1% to 2.926%.

Precious metals were down with gold falling 1.4% to $1,740 and silver losing 0.1% to $19.20.

After plummeting more than 8% Tuesday, crude prices were still in negative territory.

Global oil benchmark Brent crude was trading at $100.40 per barrel for a 2.3% loss, while US benchmark West Texas Intermediate (WTI) was at $98.47 -- down 1%.

The benchmarks recorded their lowest level Tuesday since May 11.