US stocks open higher before Fed's key decision

By Ovunc Kutlu

ANKARA (AA) - Major indices on the US stock market opened higher Wednesday before the Federal Reserve's key interest rate decision.

The Dow was up 270 points, or 0.9%, to 30,634 points at 9.35 a.m. EDT (1335GMT). The S&P 500 rose 37, or 1%, to 3,773.

The tech-heavy Nasdaq gained 116 points, or 1.07%, to 10,945.

Despite expectations of a rate hike of 50 basis points for weeks, the Fed is now expected to raise rates 75 basis points at the conclusion of its two-day meeting at 2 p.m. EDT (1800GMT).

The Fed aims to lower record inflation, which stood at a 40-year high of 8.6% in May, through more aggressive rate hikes.

The VIX volatility index, also known as the fear index, was down 2.2% to 31.97.

The dollar index fell 0.16% to 105.35 and the 10-year US Treasury yield fell 3% to 3.379%.

Precious metals reversed course, with gold rising 1% to $1,826 and silver adding 2.5% to $21.57.

Crude prices were down slightly. Global oil benchmark Brent crude was trading at $120.56 for a 0.5% loss, while US benchmark West Texas Intermediate (WTI) was at $118.20 -- a 0.6% decrease.