US stocks close higher after Fed chair's comments

By Ovunc Kutlu

ISTANBUL (AA) - US stocks closed Tuesday higher after the Federal Reserve Chair Jerome Powell said inflation has been declining.

"The disinflationary process, the process of getting inflation down, has begun," Powell said at an event at the Economic Club of Washington, D.C. "These are the very early stages of disinflation".

"We don't think this process will be smooth, it is probably going to be bumpy," he said, adding Fed officials think bringing inflation down will be "a process that takes a significant period of time."

The Dow Jones was up 265 points, or 0.78%, to close at 34,156. The S&P 500 rose 52 points, or 1.29%, to 4,164.

The tech-heavy Nasdaq increased 226 points, or 1.9%, to finish the day at 12,113.

The VIX volatility index, also known as the fear index, was down 3.9% at 18.67, while the 10-year US Treasury yield rose 1.5% to 3.687%.

The dollar index fell 0.2% to 103.39, while the euro lost 0.05% to $1.0725 against the greenback.

Precious metals were mixed, with gold rising 0.2% to $1,870 per ounce but silver trimming 0.5% to $22.16.

Crude oil prices were up more than 3.5%, with global benchmark Brent crude at $83.83 per barrel and US benchmark West Texas Intermediate crude at $77.28.