About 10 minutes into trading, the Dow Jones Industrial Average rose 0.1% to 39,810.96, as did the broad-based S&P 500 to 5,439.36.

The tech-focused Nasdaq Composite Index ticked up 0.1%, to 17,209.21.

The US consumer price index (CPI), a key gauge of inflation, eased to 2.9% in July from a year ago, according to government data published on Wednesday.

This marked its smallest 12-month rise since March 2021, paving the way toward the Federal Reserve’s first post-pandemic interest rate cut – which is widely expected to take place in September.

“Another ‘very good’ CPI inflation report in July all but confirms a rate cut in September,” said Nationwide chief economist Kathy Bostjancic in a note.

But she cautioned it “does not decisively indicate” whether the Fed kicks its easing cycle off with a 25 basis point or larger than 50 basis points rate cut.

A day earlier, data showed that the producer price index rose by 0.1% in July, down slightly from June’s pace but signalling a gradual slowdown in inflation as policymakers hope.

Among individual companies, shares of Pringles maker Kellanova jumped 7.3% in morning trading.

This came after Mars, the company behind brands like M&M’s and Snickers, announced it would acquire the snack food business in a multi-billion dollar deal that could create a new industry giant.