US stock market soars as consumer inflation slows

ANKARA

Major indices in the US stock exchanges soared at the opening on Wednesday as the annual consumer inflation gain slowed down in July.

The Dow Jones jumped 435 points, or 1.33%, to open the day at 33,208 at 9.39 a.m. EDT (1339GMT).

The S&P 500 rose 62 points, or 1.52%, to 4,185.

The tech-heavy Nasdaq soared 240 points, or 1.92%, to 12,733.

The annual consumer inflation in the US rose 8.5% in July, easing from the 9.1% yearly gains in June, according to Department of Labor figures released earlier.

Easing inflation has given confidence to investors that the Federal Reserve could start pushing the brake on rate hikes in the coming months.

The VIX volatility index, also known as the fear index, plummeted 6.8% to 20.28. The 10-year US Treasury yield was down 2.4% to 2.730%.

While the dollar index was down 1.1% to 105.19, the euro rose almost 1% to $1.0311 against the dollar.

Precious metals were on the rise, with gold adding 0.1% to $1,796 and silver increasing 0.5% to $20.64.

Oil prices were down around 1%. Global oil benchmark Brent crude was at $95.33 per barrel, while US benchmark West Texas Intermediate (WTI) was at $89.62.