US stocks rally as Fed chair hints only 0.25% rate hike

By Ovunc Kutlu

ANKARA (AA) - US stocks rallied Wednesday as the Federal Reserve chair hinted at a 25 basis points interest rate hike after the central bank's next meeting, instead of 50 basis points as some investors have been anticipating.

Jerome Powell said he is "inclined to propose and support a 25 basis point rate hike" after the conclusion of the Federal Open Market Committee's two-day meeting on March 16.

The Dow Jones industrial average jumped 596 points, or 1.79%, to close at 33,891. The S&P 500 soared 80 points, or 1.86%, to 4,386.

The Nasdaq increased 219 points, or 1.62%, to finish at 13,752.

With more certainty about the Fed's move, the VIX volatility index, known as the fear index, plummeted 7.7% to 30.74.

The dollar index was down 0.06% to 97.35, but the yield on 10-year US Treasury notes increased 10% to 1.882%.

Precious metals were in retreat, with gold falling 0.92% to $1,927 per ounce and silver shaving 0.39% to $25.28.

Amid the Ukraine-Russia war, oil prices have continued to climb.

Brent crude was trading at $114.31 per barrel, rising 8.9%, while US benchmark West Texas Intermediate crude was at $111.36 -- a 7.7% gain.