US stocks end lower as inflation stirs worries of stronger rate hike

By Ovunc Kutlu

ANKARA (AA) - US stocks closed lower Thursday as inflation has led to worries that the Federal Reserve could make a stronger interest rate increase later this month.

The blue-chip Dow was down 142 points, or 0.46% to 30,630. The S&P 500 fell 11 points, or 0.3%, to 3,790.

The tech-heavy Nasdaq, on the other hand, was almost flat, gaining 3.6 points, or 0.03%, to 11,251.

Consumer inflation increased 9.1% in June annually, while producer inflation rose 11.3% last month on an annual basis. That triggered worries that the Fed could make a rate hike of 100 basis points, instead of 75 points, at the conclusion of its two-day meeting on July 27.

The VIX volatility index, also known as the fear index, fell 2.2% to 26.22.

The 10-year US Treasury yield increased 2.3% to 2.974%.

The dollar index was up 0.6% to 108.67 after it posted a 20-year high earlier at 109.29. The euro fell to as low as $0.9952 against the dollar.

Precious metals were on the decline with gold losing 1.5% to $1,709 and silver plummeting 4.4% to $18.44 -- its lowest in a year.

Global oil benchmark Brent crude was flat at $99.70 per barrel, while US benchmark West Texas Intermediate (WTI) was at $96.34.