Equities Rise on Mild Inflation Data, Oil Prices Fall Amid US-Iran Tensions

Global equities rose on Wednesday after mild inflation data suggested the Federal Reserve might hold interest rates steady, while oil prices fell due to lower demand forecasts and ongoing tensions between the US and Iran.

The Bureau of Labor Statistics reported a 0.1% increase in consumer prices for July, which was in line with expectations. This development weakens the argument for an interest rate hike from the Federal Reserve next month.

Money markets showed a roughly 50% chance of a hike before the data release, but Robert Pavlik, senior portfolio manager at Dakota Wealth Management, said the data 'relieves some of the concerns that the Fed is being pushed toward a rate hike due to inflation.'

Oil prices fell after forecasters cut projections for 2026 global demand. Brent crude futures dropped 0.37% to $88.58 per barrel, and U.S. crude fell 0.26% to $82.98.