(Updates with latest market prices and developments.)
US benchmark equity indexes were higher intraday as traders digested a benign consumer inflation report and the latest batch of corporate earnings.
The Nasdaq Composite was up 0.6% at 26,609.2 after midday Wednesday, while the S&P 500 rose 0.3% to 7,752.9. The Dow Jones Industrial Average advanced 0.1% to 53,829.5. The three indexes finished Tuesday trading lower for a second consecutive session.
Among sectors, technology led the gainers intraday Wednesday, while communication services and consumer discretionary saw the steepest declines.
US annual consumer inflation came in at 3.4% in July, easing from 3.5% the month prior and marking the slowest pace of price growth since March, official data showed. Core inflation, which excludes volatile food and energy items, eased to 2.5% from June's 2.6%. Both prints matched the forecasts in a Bloomberg-compiled survey.
On a month-on-month basis, consumer prices rose 0.1% in July following a 0.4% drop the month prior. Core prices rose to 0.2% after holding steady in June. Both readings were in line with market projections.
"Both the headline and core CPI in July were benign enough to reinforce our baseline forecast for a prolonged pause by the Federal Reserve over the remainder of the year," Oxford Economics said in a note. "Market expectations for a September rate hike have also downshifted on the back of the July CPI."
The probability of the Fed keeping its benchmark lending rate unchanged next month increased to 62% Wednesday from 52% Tuesday, according to the CME FedWatch tool. The odds that the central bank will hike interest rates by 25 basis points fell to 38%.
US Treasury yields were lower intraday, with the two-year yield down 2.1 basis points at 4.2% and the 10-year yield falling one basis point to 4.67%.
In company news, Super Micro Computer (SMCI) shares jumped nearly 18% intraday, the top performer on the S&P 500. Late Tuesday, the company issued an upbeat fiscal 2027 revenue outlook.
Lumentum (LITE) followed Super Micro on the S&P 500 intraday Wednesday, up 17%. Late Tuesday, Lumentum delivered a fiscal fourth-quarter beat.
Home Depot (HD) shares were down 2.9% intraday Wednesday, the biggest decline on the Dow, after the company said Chief Executive Ted Decker is taking a temporary medical leave of absence.
Cisco Systems (CSCO) is scheduled to report its latest financial results after the closing bell Wednesday, along with others.
West Texas Intermediate crude oil was down 0.2% at $83.06 a barrel intraday, while Brent fell 0.3% to $88.64.
The International Energy Agency projected a larger decline in global oil demand this year than previously estimated as the continued closure of the Strait of Hormuz weighs on consumption. Separately, the Organization of the Petroleum Exporting Countries lowered its global oil demand growth outlook for 2026 while projecting a stronger rebound for next year than previously estimated.
Iran could "prolong" war with Washington until US President Donald Trump is out of office, CNN reported Wednesday, citing a top adviser to the commander of Tehran's Islamic Revolutionary Guard Corps.
Yemen's Iran-aligned Houthis killed six people in an attack on a container ship in the Bab el-Mandeb Strait, an alternative route to the Strait of Hormuz, CNBC reported. The US Central Command said in a post on X that its forces disabled the steering gear of a cargo vessel that allegedly attempted to transit the Gulf of Oman and breach its Iranian blockade.
Gold was up 0.7% to $4,402.62 per troy ounce, while silver rose 1.1% to $65.48.
