US stocks open with gains despite record producer inflation

By Ovunc Kutlu

ANKARA (AA) - US stocks opened with gains Tuesday, despite producer inflation rising on a record pace.

The Dow Jones industrial average was up 291 points, or 0.89%, to 33,4236 at 9.37 a.m. EDT (1337GMT). The S&P 500 rose 36 points, or 0.87%, to 4,209.

The Nasdaq increased 103 points, or 0.82%, to 12,685.

US producer prices were up 10% in February on an annual basis, according to Labor Department figures.

Investors were fast to shake off the record inflation data, which came in line with market expectation, as focused on the Federal Reserve's two-day meeting that will conclude Wednesday.

The Fed is expected to make a 25-basis point rate hike to start monetary tightening.

The VIX volatility index, known as the fear index, was up 0.16% to 31.82.

The dollar index was down 0.2% to 98.80. The yield on 10-year US Treasury notes fell 2.4% to 2.089%.

Precious metals continued their decline with gold falling 1.3% to $1,924 per ounce and silver losing 0.6% to $24.9.

Crude oil prices plummeted more than 6%, pulling back from last week's 14-year highs.

Global oil benchmark Brent crude was trading at $100.12 per barrel, down 6.3%, while the US benchmark West Texas Intermediate (WTI) was at $96.09 -- a 6.7% loss.