US stocks open higher as Fed meeting kicks off

By Ovunc Kutlu

ISTANBUL (AA) - Major US stock exchanges opened higher Tuesday as the Federal Reserve's two-day monetary policy meeting kicks off.

The Dow Jones industrial average increased 155 points, or 0.37%, to 41,777 as of 10.11 a.m. EDT (1411GMT).

The S&P 500 rose 31 points, or 0.57% to 5,664. The Nasdaq Composite added 154 points, or 0.88%, to 17,746.

The Fed is expected to begin lowering interest rates after the meeting Wednesday, but the magnitude remains in question.

The probability of a rate cut of 25 basis points stood at 37% at 10.11 a.m., while a cut of 50 basis points was at 63%, according to the FedWatch Tool provided by the Chicago Mercantile Exchange Group

The VIX volatility index, referred to as the "fear index," fell 0.7% to 17.02. The 10-year US Treasury yield rose 0.7% to 3.649%.

The US dollar index increased 0.12% to 100.88, while the euro lost 0.05% against the dollar, trading at $1.1126.

Precious metals were mixed. Gold lost 0.05% to $2,581 per ounce, but silver rose 0.8% to $30.98.

Oil prices increased around 1%, with global benchmark Brent crude at $73.54 per barrel and US benchmark West Texas Intermediate at $69.94.