12:56 PM EDT, 08/13/2025 (MT Newswires) -- US equity indexes rose after midday Wednesday as a decline in both government bond yields and the dollar helped validate a 99.9% probability that the Federal Reserve will cut interest rates in September.

The Nasdaq was up 0.1% to 21,693.1, after hitting a record 21,803.75 intraday, extending gains from Tuesday, when July's inflation data was perceived to be conducive for a Fed rate cut next month. The S&P 500 rose 0.1% to 6,453.5, after touching an all-time high of 6,480.28 earlier in the session. The Dow Jones Industrial Average climbed 0.8% to 44,446.8, hovering close to its peak of 45,073.63.

Healthcare and consumer discretionary led the gainers intraday, while industrials and consumer staples were among the decliners.

The odds of a 25-basis-point cut in September rose to 99.9% as of Wednesday afternoon, versus 94% a day ago, according to the CME FedWatch Tool. The likelihood stood at 57% a month ago.

For investors, the concern was that a hot July consumer price index would have removed the prospects of a September cut altogether, particularly if the tariff impact became more obvious, according to a Wednesday note from Deutsche Bank.

"So, the fact that CPI was broadly as expected was met with relief, leading to equity gains and tighter credit spreads as investors became increasingly confident about another rate cut," the note said.

US Treasury yields fell intraday, with the 10-year yield down six basis points to 4.23% and the two-year rate sank 5.2 basis points to 3.68%.

The ICE US Dollar Index fell 0.4% to 97.72, trading close to its lowest this year.

In company news, Madison Square Garden Entertainment ( MSGE ) swung to a fiscal Q4 loss amid a slump in event-related revenue, sending its shares down 12% intraday.

In economic news, mortgage applications in the US increased last week as lower 30-year rates on conforming loans spurred refinancing activity to the strongest week since April, according to the Mortgage Bankers Association. The market composite index, which measures loan application volume, rose 10.9% on a seasonally adjusted basis for the week ended Friday, following a 3.1% increase the week prior.

West Texas Intermediate crude oil futures slumped 1.8% to $62.03 a barrel, the lowest since early June.

In its monthly Oil Market Report, the International Energy Agency again trimmed its 2025 demand-growth forecast to 0.7-million barrels per day, down by 20,000 bpd from July and by 350,000 bpd since the start of the year, on weaker-than-expected demand from developing economies.

Weakening demand is being met by rising supply, with the agency increasing its supply-growth forecast for this year by 370,000 bpd to 2.5 million bpd as OPEC+ prepares to return the last 548,000 bpd tranche of its 2.2 million bpd of production cuts in September.

Gold futures rose 0.3% to $3,410.2 per ounce.