US stocks open strong, trying to recover from 3-day losing streak

By Ovunc Kutlu

ANKARA (AA) – Major indices in the US stock market opened with strong gains on Tuesday, trying to recover from a three-day losing streak led by investors' worries of a possible recession amid the Federal Reserve's monetary tightening.

The Dow Jones jumped 450 points, or 1.4%, to 32,695 at 9.34 a.m. EDT (1334GMT). The S&P 500 rose 67 points, or 1.7%, to 4,060 points.

The Nasdaq soared 267 points, or 2.3%, to 11,890.

The indices were in a major selloff for three consecutive trading days after the Fed raised interest rates 50 basis points last Wednesday and signaled that more hikes are on the table in coming meetings.

The central bank's aggressive tightening to tame the record-high inflation is viewed by many investors as a major risk that could cause a recession in the American economy.

The New York Fed President John Williams, however, said earlier that higher interest rates will "cool" demand to lower the inflation.

With some signs of recovery in indices, the VIX volatility index, also known as the fear index, fell 5.8% to 32.75 around the time of the opening bell.

The 10-year US Treasury yield retreated from its highest level since November 2018, as it fell 3.6% to 2.969% at the time.

The dollar index was down slightly to $103.62 with a 0.03% daily loss.

Precious metals were on the rise, with gold adding 0.45% to $1,862 and silver rising 0.76% to $21.96.

Crude oil prices were slightly down. Global oil benchmark Brent crude was trading at $105.74 for a 0.2% daily loss, while the US benchmark West Texas Intermediate (WTI) was at $103 – a 0.1% loss.

After Bitcoin dipped to $29,730 at 0030GMT on Tuesday, its lowest level since July 21, it was up to $32,240 at 1333GMT.

The world's most popular cryptocurrency, however, lost over 25% of its value in six days.