12:41 PM EDT, 09/11/2024 (MT Newswires) -- US equity indexes traded mixed after midday on Wednesday as the probability of a supersized interest-rate cut this month slumped following the release of the August inflation data.

The S&P 500 index fell 0.3% to 5,478.8 and the Dow Jones Industrial Average declined 0.8% to 40,428.8. The Nasdaq Composite, however, rose 0.4% to 17,098.6, after trading lower earlier in the session. All but one sector, technology, retreated intraday, with financials, energy, and consumer staples leading the decliners.

In economic news, the consumer price index climbed 0.2% in August, unchanged from the previous month, the Bureau of Labor Statistics said Wednesday. The headline reading was in line with a survey compiled by Bloomberg. Annually, inflation eased to 2.5% from July's 2.9% and met Wall Street's consensus.

Core CPI rose 0.3% month-over-month in August, up from a 0.2% gain in the previous month and 0.2% consensus. Over a year ago, core CPI grew 3.2%, meeting expectations. It was at the same level as a year earlier.

Rents accelerated, month-to-month, for a second straight time, according to a note from the Wells Fargo Investment Institute Wednesday. That lifted 12-month rental inflation for the first time since it peaked at 8.1% in April 2023, preventing improvement in core services and the overall core CPI inflation rate.

US core inflation rose a touch last month "finally rejects supersizing Fed cuts," a Scotiabank note said. "There is no reason to supersize a cut next week versus sticking to the gradual mantra."

The probability of a 50 basis-point cut at the Sept. 18 Federal Reserve monetary policy meeting sank to 13% by Wednesday afternoon from 34% a day ago, according to the CME Group's FedWatch Tool. The remaining 87% likelihood was for a 25 basis-point drop, up from 66% a day earlier.

Treasury yields rose, with the 10-year yield up 1.5 basis points to 3.66%, and the two-year rate was 2.6 basis points higher at 3.64%. The yields were trading lower earlier in the session.

Meanwhile, West Texas Intermediate crude oil jumped 2.1% to $67.18 a barrel.

In company news, the Netherlands said ASML ( ASML ) needs export licenses to send China software updates for microchip production equipment that isn't on a restriction listed, Reuters reported, citing a statement from the foreign ministry. Shares of the company rose 4%, among the top gainers on the Nasdaq.