On Wednesday, the latest U.S. inflation data came in relatively mild, reinforcing market expectations that the Federal Reserve will hold off on a rate hike in September. This boosted tech stocks on Wall Street, though declines in some heavyweight stocks weighed on the Dow. As a result, the three major U.S. indexes ended mixed. At the close, the Dow fell 0.04%, the S&P 500 rose 0.26%, and the Nasdaq gained 0.54%.

U.S. inflation data for July matched market forecasts, fueling expectations that the Fed will keep rates unchanged in September. The Bureau of Labor Statistics reported that the July CPI rose 3.4% year-over-year, slightly down from June's 3.5%, while the core CPI increased 2.5% year-over-year. Both figures came in line with expectations. Analysts noted that the data did not indicate any alarming signs of runaway inflation, though the 3.4% annual increase remains well above the Fed's 2% long-term target. Regarding the Fed's likely rate path, the latest data from the CME FedWatch Tool showed a 59.9% probability of the Fed holding rates steady at its September meeting, with the chance of a 25-basis-point hike dropping to 40.1%.

International gold and silver prices rose on Wednesday, driven by the benign U.S. inflation data and reduced bets on a Fed rate hike. At the close, gold futures for December delivery on the New York Mercantile Exchange rose 0.59% to settle at $4,467.50 per ounce, while silver futures for September delivery gained 1.18% to close at $65.70 per ounce.

After the U.S. market close on Wednesday, Cisco reported its fiscal fourth-quarter 2026 results. Revenue surged 18% year-over-year to $17.3 billion, setting a quarterly record and exceeding market expectations. The company's adjusted operating margin reached 35.9%. The standout performer was artificial intelligence, with orders from hyperscale cloud providers hitting $4 billion in the quarter. While Cisco's shares initially jumped nearly 8% in after-hours trading, they later reversed course, falling as much as 6%. Analysts suggested that despite the impressive results, the market is starting to question the sustainability of Cisco's AI orders and whether the stock's recent gains had already priced in the positive news.

European stocks closed lower across the board on Wednesday, as uncertainty over the Middle East situation and elevated oil prices fueled concerns about renewed inflation pressure in the region. The UK's FTSE 100 dipped 0.10%, France's CAC 40 fell 0.46%, and Germany's DAX lost 0.23%.

International oil prices edged higher on Wednesday, though the gains were narrower than in previous sessions, as the outlook for U.S.-Iran negotiations remained unclear, cooling expectations for a near-term reopening of the Strait of Hormuz. At the close, light crude for September delivery on the New York Mercantile Exchange rose 0.08% to settle at $83.27 per barrel, while Brent crude for October delivery gained 0.08% to close at $88.98 per barrel.