Ovunc Kutlu
10 August 2022•Update: 10 August 2022
ANKARA
US stocks rallied to close higher Wednesday as easing consumer inflation relaxed worries about the Federal Reserve's aggressive monetary tightening.
The Dow Jones soared 535 points, or 1.63%, to close at 33,309. The S&P 500 rose 87 points, or 2.13%, to finish at 4,210.
The tech-heavy Nasdaq jumped 360 points, or 2.89%, to end the day at 12,854.
US annual consumer inflation rose 8.5% in July, easing from the 9.1% annual gain in June, according to Department of Labor figures.
Slowing inflation gave confidence to investors that the Fed could start pumping the brakes on rate hikes in the coming months.
The probability of the Fed raising interest rates by 75 basis points next month fell to 37% shortly after the release of inflation data, while the probability of a 50 basis points rate hike climbed to 63%.
The VIX volatility index, also known as the fear index, plummeted 9.5% to 19.71. The 10-year Treasury yield was down 0.05% to 2.796%.
While the dollar index was down 1.1% to 105.21, the euro rose 0.9% to $1.0301 against the dollar.
Precious metals were mixed, with gold shedding 0.2% to $1,791 but silver increasing 0.3% to $20.59.
Oil prices reversed course and climbed into positive territory.
Global oil benchmark Brent crude was at $97.11 per barrel with a 0.8% gain, while US benchmark West Texas Intermediate (WTI) was at $91.59 -- a 1.2% increase.
