Ovunc Kutlu
14 September 2022•Update: 14 September 2022
ANKARA
US stocks opened higher on Wednesday with a slight rebound from previous day's massive losses as producer inflation rise in August showed a slowdown from the months before.
Producer inflation in the US annually rose 8.7% in August, according to Labor Department figures released earlier. The latest figure is a significant decline from July’s 9.8% increase and the 11.3% gain in June.
The Dow Jones was up 76 points, or 0.24%, to 31,181 at 9.39 am EDT after the blue-chip index lost 3.94% on Tuesday.
The S&P 500 rose 7 points, or 0.2%, to 3,940, while it plummeted 4.32% on the previous session.
The tech-heavy Nasdaq increased 6 points, or 0.1%, to 11,640 after the it dove a whopping 5.16% on the day before.
The massive sell-off on Tuesday recorded the worst single-day loss of 2022 for the indexes, and it came after annual consumer inflation in the US was announced at 8.3% in August, above the market estimate of an 8.1% annual increase.
This created worries among investors that the Federal Reserve could make a rate hike of 100 basis points next Wednesday, instead of a 75 basis points of interest rate increase.
The probability of the Fed making a rate hike of 100 basis points climbed to as high as 34% on Wednesday before the first bell on Wall Street, although it fell to 30% shortly after opening, according to the FedWatch Tool provided by US-based global markets company Chicago Mercantile Exchange Group.
The VIX volatility index, also known as the fear index, fell 1.3% to 26.91. The 10-year US Treasury yield was up 0.3% to 3.431%.
While the dollar index decreased 0.25% to 109.54, the euro was up 0.24% to $0.09995 against the dollar.
Precious metals were on the rise with gold adding 0.15% to $1,702 and silver jumping 1.2% to $19.58.
Oil prices were up more than 2%. Global oil benchmark Brent crude was trading at $95.23 a barrel for a 2.2% gain, and the US benchmark West Texas Intermediate was around $89.57 per barrel – a 2.6% increase.
