US stocks open mixed after Fed's key meeting

By Ovunc Kutlu

ISTANBUL (AA) - US stocks opened mixed on Thursday following the Federal Reserve's key meeting, during which the central bank signaled two more rate hikes for this year.

The blue-chip Dow Jones was up 81 points, or 0.25%, to 34,060 at 9.44 a.m. EDT. The S&P 500 rose only four points, or 0.1%, to remain mostly flat at 4,376.

The tech-heavy Nasdaq, on the other hand, declined four points, or 0.1%, to 13,622.

The Fed on Wednesday skipped an interest rate increase, as widely expected, and kept its federal funds rate unchanged between the 5%-5.25% range.

The central bank's latest projections, however, indicate that two more rate hikes by 25 basis points each are possible for the remainder of the year.

Fed Chairman Jerome Powell, in his post-meeting press conference, said "Nearly all committee participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year."

The probability of the Fed announcing a rate hike of 25 basis points at the conclusion of its next two-day meeting on July 26 was at 64.5% during the time, according to the FedWatch Tool provided by the US-based Chicago Mercantile Exchange Group.

The VIX volatility index, also known as the fear index, rose 0.7% to 13.98. The 10-year US Treasury yield, meanwhile, dropped 1.8% to 3.730%.

The dollar index shed 0.2% to 102.74, and the euro rose 0.55% to $1.0892 against the greenback.

Precious metals were mixed, with gold adding 0.4% to $1,949 per ounce but silver trimming 0.5% to $23.79.

Oil prices were up around 1.6%, with global benchmark Brent crude at $74.34 per barrel and US benchmark West Texas Intermediate at $69.34.