US stocks positive as easing inflation numbers calms fears of Fed rate hike

ISTANBUL

Major indices in the US stock market were in positive territory Tuesday as easing inflation figures calmed fears about more rate hikes by the Federal Reserve.

The Dow Jones added 336 points, or 1.06%, to 32,155 at 10.04 a.m. EDT. The S&P 500 gained 60 points, or 1.56%, to 3,916.

The tech-heavy Nasdaq jumped 208 points, or 1.86%, to 11,395.

Annual consumer inflation in the US came in at 6% in February, easing from 6.4% in January, according to figures.

The February figure became the smallest 12-month increase since the period ending in September, while it marked a sharp decline from June's 9.1% yearly gain. It rose 0.4% from the previous month.

The figures soothed fears that the Fed would consider a large rate hike, while the central bank is now expected to make a smaller hike of 25 basis points after the conclusion of its two-day meeting March 22.

The probability of the US central bank making a rate hike of 25 basis points jumped to 82% as of Tuesday, while there is an 18% probability of keeping the interest rate steady, according to the FedWatch Tool provided by the US-based global markets company the Chicago Mercantile Exchange Group as of 10.04 a.m. EDT.

The VIX volatility index, also known as the fear index, plummeted 11.3% to 23.53, while the 10-year US Treasury yield soared 4.2% to 3.662%.

The dollar index rose 0.3% to 103.87, while the euro lost 0.1% to $1.0722 against the greenback.

Precious metals were mixed, with the price of gold falling 0.4% to $1,906 per ounce. Silver was flat at $21.81.

Oil prices lost around 0.7%, with global benchmark Brent crude at $80.25 per barrel and US benchmark West Texas Intermediate at $74.09.