NEW YORK (AP) 鈥 Wall Street ticked higher after the latest update on inflation came in almost exactly as economists expected. The S&P 500 rose 0.4% Wednesday, coming off one of its best days of the year. The Dow Jones Industrial Average added 0.6%, and the Nasdaq composite ended basically flat. Treasury yields were steady after the U.S. government said consumers paid prices for food, gasoline and other things last month that were 2.9% higher than a year earlier. The data should keep the Federal Reserve on track to cut its main interest rate in September.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥 Wall Street is holding relatively steady Wednesday after the came in almost exactly as economists expected.
The S&P 500 was edging up by 0.3% in afternoon trading, coming off . The Dow Jones Industrial Average was up by 221 points, or 0.6%, as of 2:32 p.m. Eastern time, and the Nasdaq composite was 0.2% lower.
Treasury yields were relatively steady in the bond market after the U.S. government said consumers paid prices that were last month for gasoline, food, shelter and other things than a year earlier.
The data should keep the Federal Reserve on track to at its next meeting in September, a move that Wall Street has long been looking forward to. The Fed has been keeping at an in hopes of that topped 9% two years ago, and lower rates would ease the pressure on both the economy and on prices for investments.
The only question is to rates since the 2020 COVID crash will be: the traditional quarter of a percentage point or a more dramatic half point?
Wednesday鈥檚 reading on inflation at the consumer level wasn鈥檛 as cool as the prior day鈥檚 update on , but it likely doesn鈥檛 change much, according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.
If most of the data over the next few weeks points to a slowing economy, he said the more aggressively. That includes a report coming up Thursday about how much U.S. shoppers .
While the economy is still growing, and many economists see a recession as unlikely, worries have risen about its strength after a much by U.S. employers in July.
The yield on the 10-year Treasury eased to 3.83% from 3.85% late Tuesday. It鈥檚 been coming down since topping 4.70% in April, as expectations have built for coming cuts to interest rates.
The two-year yield, which more closely tracks expectations for the Fed, rose to 3.96% from 3.94% late Tuesday, as traders weigh whether September鈥檚 anticipated cut will be the traditional or jumbo-sized move.
On Wall Street, Kellanova rose 7.7% after the company behind Pringles, Cheez-Its and Kellogg鈥檚 for $83.50 per share in cash. The companies put the deal鈥檚 total value at $35.9 billion, including debt. Kellanova was created when the Co. split into three companies in the summer of 2022.
Cardinal Health rose 3.3% after joining the parade of companies that have reported stronger profit for the spring than analysts expected.
On the losing end was Brinker International, the company behind Chili鈥檚 and Maggiano鈥檚 restaurants. It fell 10.1% after reporting weaker profit for the latest quarter than expected. That was despite strengthening sales trends at Chili's, which got a boost from higher prices, increased traffic and the launch of its 鈥淏ig Smasher鈥 burger. Expectations were high coming into the report for Brinker International, whose stock is still up 46% for the year so far.
Starbucks fell 1.4% to give back some of its big gain from the prior day after it said it had from Chipotle Mexican Grill to become its CEO.
In stock markets abroad, indexes were modestly higher across much of Europe and mixed in Asia.
Japan鈥檚 Nikkei 225 has been the center of financial markets鈥 wildest action in recent weeks, and it rose a relatively modest 0.6% following a day of ups and downs. Japan's embattled surprised the country Wednesday by announcing he'll step down when his party picks a new leader next month.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
