US stocks end around 2% lower ahead of key inflation figure

By Ovunc Kutlu

ANKARA (AA) - Major US stock indexes closed around 2% lower Wednesday as investors awaited key inflation data.

The Dow Jones Industrial Average lost 646.89 points, or 1.95%, to finish at 32,513.94. The S&P 500 dove 79.54 points, or 2.08%, to 3,748.57.

The Nasdaq plummeted 263.03 points, or 2.48%, to close at 10,353.18.

Consumer inflation in the US is expected to show an annual gain of 8% in October when the data will be released before the market opening on Thursday.

The figure, which is closely watched by the Federal Reserve, posted an annual increase of 8.2% in September, slightly easing from an 8.3% yearly gain in August.

Inflation, however, is still hovering around its highest level in 40 years, and it is far from the Fed's objective of 2%. The central bank has been aggressively hiking interest rates to tame inflation as it has increased rates a total of 375 basis points, or 3.75%, since March.

The VIX volatility index, also known as the fear index, rose 2.1% to 26.09. The 10-year US Treasury yield, meanwhile, declined 1.3% to 4.089%.

The dollar index was down 0.23% to 110.30 but still around its highest in 20 years, while the euro added 0.1% to $1.0018 against the greenback.

Precious metals were on the rise, with gold adding 0.1% to $1,708 per ounce and silver increasing 0.15% to $21.10.

Oil prices were mixed, with global benchmark Brent crude trading at $92.56 per barrel, up 0.15%. US benchmark West Texas Intermediate crude was around $85.74, down 0.1%.