American stock exchanges closed Tuesday with gains a day ahead of a US Federal Reserve meeting.

The Fed is expected to make a 25-basis point rate hike to start monetary tightening.

US producer prices were up 10% in February on an annual basis, according to Labor Department figures.

Investors were fast to shake off the record inflation data, which came in line with market expectations, as they focused on the Fed's two-day meeting slated to conclude on Wednesday.

Investors continued to monitor the Russia-Ukraine war, with the two countries to resume talks on Wednesday.

Meanwhile, US President Joe Biden signed a sweeping federal government spending bill on Tuesday that includes $13.6 billion in additional funding to assist Ukraine in the war with Russia.

Given these developments, the Dow Jones industrial average surged 600 points, or 1.8%, to 33,544.

The S&P 500 increased 2.1% to 4,262 and the Nasdaq Composite gained 2.9% to 12,948.

The VIX volatility index, known as the fear index, fell 6.1% to 29.83, while the yield on 10-year Treasuries advanced one basis point to 2.15%.

On the commodities side, the West Texas Intermediate crude was trading below $100 a barrel./agencies