01:40 PM EDT, 09/27/2024 (MT Newswires) -- US equity indexes were mixed while most government bond yields fell on choppy midday Friday after inflationary pressures mostly eased in August and consumer sentiment was revised upward.

The Dow Jones Industrial Average traded 0.4% higher at 42,347.6 after touching a new intraday high of 42,628.32 earlier in the session. The S&P 500 was 0.1% lower at 5,738.7. The Nasdaq Composite, fell 0.4% to 18,121.7. Energy and utilities led the gainers, with most sectors in the green after midday. Technology and consumer discretionary were among the trio of decliners.

The personal consumption expenditures price index grew 0.1%, right on expectations, slowing the year-over-year rate to 2.2% from 2.5% in July. The index was up 0.2% month-over-month in July.

The core PCE, which excludes the more volatile food and energy prices, also increased 0.1%, below the 0.2% increase expected and following a 0.2% gain in July. The year-over-year rate accelerated to 2.7% in August from 2.6% in the previous month.

Following the data, the probability of a 50 basis point cut in the Fed's target rate to 4.25% to 4.5% rose to 52.1% from 49.3% a day ago, according to the CME Group's FedWatch Tool. The remaining 47.9% likelihood was for a 25 basis-point reduction, implying a lack of clarity among interest-rate traders over the size of the next rate cut at the monetary policy meeting on Nov. 7.

A "somewhat mixed" inflation report released this morning will likely intensify the already present divide among policy officials, a note from Stifel said.

"While the headline offered further confidence in the disinflationary trend and support for the Fed's larger 50 [basis point] cut last week, a tick higher in the core after one month of sideways movement coupled with a lack of further improvement in the core CPI and core PPI last month suggests there remain upside inflationary risks," Stifel Chief Economist Lindsey Piegza said in the note.

Further, in economic news, the University of Michigan consumer sentiment index was revised upward to 70.1 for September from 69 in the preliminary estimate, compared with expectations for 69.4 in a survey compiled by Bloomberg. That move was above the final reading of 67.9 in August. Respondents expected a 2.7% inflation rate over the next year, slower than the 2.8% rate in August, while five-year inflation expectations accelerated to 3.1% after holding at 3% in the previous five months.

Most US Treasury yields fell, with the 10-year yield down 3.8 basis points to 3.75% and the two-year rate 5.8 basis points lower at 3.56%.

In company news, Bristol-Myers Squibb ( BMY ) has obtained approval from the US Food and Drug Administration for its Cobenfy drug to treat schizophrenia in adults.

West Texas Intermediate crude oil rose 1% to $68.34 a barrel.

Gold fell 0.8% to $2,671.90 an ounce and silver declined 1.5% to $31.86.