US stocks close higher as investors digest Fed chair's remarks

By Ovunc Kutlu

ANKARA (AA) - US stocks closed higher Tuesday as investors digested Federal Reserve Chair Jerome Powell's hawkish remarks during the last session.

The Dow Jones industrial average was up 254 points, or 0.74%, to close at 34,807.

The S&P 500 rose 50 points, or 1.13%, to end at 4,511.

The tech-heavy Nasdaq soared 270 points, or 1.95%, to finish at 14,108.

Powell said Monday that the central bank is committed to restoring price stability, even by raising interest rates more "aggressively."

"We will take the necessary steps to ensure a return to price stability. In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so," he said during a speech at the National Association for Business Economics’ annual conference in Washington, D.C.

The Fed raised its benchmark interest rate by 25 basis points last week, its first rate hike since late 2018. It also signaled six additional hikes for the rest of 2021.

The VIX volatility index, known as the fear index, was down 2.5% to 22.94. The dollar index fell 0.04% to 98.46.

The yield on 10-year US Treasury notes, on the other hand, rose almost 3% to 2.386%.

Precious metals were on the decline with gold falling 0.78% to $1,920 per ounce and silver losing 1.75% to $24.76.

Global oil benchmark Brent crude was trading at $114.99, down 0.54%, while US benchmark West Texas Intermediate (WTI) was at $108.89 -- almost a 1% loss.