US stocks close higher as easing inflation alleviates concerns over Fed

By Ovunc Kutlu

ISTANBUL (AA) - Major US stock market indexes closed higher Tuesday as easing consumer inflation in November calmed fears of a steeper interest rate increase from the Federal Reserve.

The Dow Jones Industrial Average rose 103.60 points, or 0.30%, to finish at 34,108.64. The S&P 500 added 29.09 points, or 0.73%, to 4,019.65.

The tech-heavy Nasdaq jumped 113.08 points, or 1.01%, to 11,256.81.

Annual US consumer inflation came in at 7.1% in November, easing from 7.7% in October, according to figures released before the market opening.

The figure has been the smallest 12-month increase since the period ending December 2021, while it is a sharp decline from a 9.1% yearly gain in June, which had been the largest 12-month increase since November 1981.

The inflation data came hours before the Fed kicked off its key two-day monetary policy meeting. The central bank will announce its interest rate decision Wednesday and is expected to raise rates by 50 basis points.

The VIX volatility index, also known as the fear index, plummeted 9.2% to 22.69. The 10-year US Treasury yield decreased 2.7% to 3.514%.

The dollar index fell 1.1% to 104.01, while the euro added 0.9% to $1.0631 against the greenback.

Precious metals gained more than 1%. The price of gold rose 1.6% to $1,811 per ounce and silver added 1.7% to $23.71.

Crude oil prices were up around 3%. Global benchmark Brent crude was trading at $80.60 per barrel for an increase of 3.3%. US benchmark West Texas Intermediate crude was around $75.37 -- up 3%.