US stocks close higher after producer inflation figures

By Ovunc Kutlu

ISTANBUL (AA) - Major stock exchanges in the US closed Tuesday with gains as producer prices rose in July below expectations.

The Dow Jones was up 408 points, or 1.04%, to finish the day at 39,765. The S&P 500 rose 90 points, or 1.68%, to 5,434.

The Nasdaq, meanwhile, jumped 407 points, or 2.43%, to end the session at 17,187.

Producer inflation in the US rose 0.1% monthly in July, coming below expectations of 0.2% in July, the Bureau of Labor Statistics said earlier. On an annual basis, producer prices rose 2.2% in July, also coming below market estimates of a 2.3% increase.

The VIX volatility index, also known as the fear index, dove 12.5% to 18.12. The 10-year US Treasury yield fell 1.5% to 3.851%.

The US dollar index lost 0.53% to 102.59, while the euro rose 0.6% to $1.0998 against the greenback.

Precious metals were in negative territory, with gold losing 0.28% to $2,465 per ounce and silver losing 0.4% to $27.86.

Oil prices were down around 1.8%, with global benchmark Brent crude at $80.88 per barrel and US benchmark West Texas Intermediate at $78.60.