US stocks open higher with weak inflation data

By Ovunc Kutlu

ANKARA (AA) - Major indexes in the US stock market opened higher on Wednesday as weak consumer price data calmed investors' worries amid rising inflation and increased their risk appetite.

The Dow Jones rose 269 points to 32,102 at 9.42 a.m. EDT (1442GMT), while the S&P 500 added 22 to 3,898.

The Nasdaq increased 99 points to 13,173 as tech stocks returned to their strong performance with GameStop and AMC soaring 13% each, and Tesla rising 5%.

The VIX volatility index, also known as the fear index, was down a massive 6% to 22.56 as weak consumer prices calmed investors' concerns about the possibility of rising inflation due to higher yield on 10-year US Treasury notes.

With increased risk appetite, Bitcoin was above the $56,000 mark with a 3% daily gain, but precious metals remained flat with gold at $1,716 per ounce and silver at $25.99.

The Consumer Price Index (CPI), which the Federal Reserve focuses on heavily as a major inflation indicator, rose 0.4% in February. It was up 1.7% on an annual basis -- still below the central bank's 2% target.

Investors will closely watch President Joe Biden's $1.9 trillion relief bill that is expected to be voted on in the House of Representatives later Wednesday.