02:01 PM EDT, 09/11/2024 (MT Newswires) -- US benchmark equity indexes were struggling for direction intraday as markets parsed official consumer inflation data for August.

The Dow Jones Industrial Average was down 0.5% at 40,547.8 after midday Wednesday, while the Nasdaq Composite rose 0.7% to 17,144. The S&P 500 was little changed at 5,492.7. Barring technology, all sectors were in the red, led by consumer staples and financials.

In economic news, US consumer inflation rose as expected last month on a sequential basis, while the annual metric logged the smallest increase since February 2021, government data showed.

"The August readings of employment and inflation have done little to strengthen the case for a larger, 50-basis-point rate cut next week," TD Economics said in a note to clients. "Instead, the (Federal Reserve) is likely to play it cool and cut rates by just 25 (basis points), but also signal more easing in the months ahead."

The odds of a 25-basis-point interest-rate cut on Sept. 18 jumped to 87% Wednesday from 66% Tuesday, while the probability of a more aggressive 50-basis-point reduction fell to 13% from 34%, according to the CME FedWatch tool.

The official producer prices report for August is scheduled to be released Thursday.

Mortgage applications in the US increased for the third consecutive week as the 30-year rate for conforming loan balances declined to its lowest level since February 2023, the Mortgage Bankers Association said.

The US two-year yield increased 3.9 basis points to 3.65% intraday, while the 10-year rate gained 2.3 basis points to 3.67%.

West Texas Intermediate crude oil jumped 3.2% to $67.87 a barrel.

In company news, Valero Energy ( VLO ) shares dropped 3.5%, among the steepest declines on the S&P 500, as Wolfe Research adjusted its price target on the stock to $169 from $176.

Manchester United's ( MANU ) fiscal fourth-quarter loss increased amid revenue declines in two of its three reportable segments. The British soccer club expects its restructuring initiatives to impact results in fiscal 2025. The company's shares fell 4.8%.

Super Micro Computer ( SMCI ) and Nvidia ( NVDA ) shares were up 5.8% and 5.4%, respectively, among the best performers on the S&P 500 and the Nasdaq.

Gold was little changed at $2,543 per troy ounce, while silver rose 1.2% to $28.96 per ounce.