Dow Flat Amid Inflation Data, Geopolitical Concerns

The Dow Jones Industrial Average closed essentially flat on Wednesday at 53,770.27, after a volatile session that saw it dip to a low of 53,731.96.

The blue-chip index had opened at 53,797.47 and traded in a wide intraday range, but its net change was just 21.58 points, or 0.04%, after the day's key catalyst: the release of the US Consumer Price Index for July.

The CPI showed inflation running at a 3.4% annual pace, in line with consensus estimates and slightly lower than June's 3.5% reading. Monthly price growth came in at just 0.1%, aided by declining gasoline prices.

While the data was seen as reducing the likelihood of a Federal Reserve interest-rate hike at its September meeting, the initial market reaction to the report was positive, with the Dow briefly rallying over 100 points. However, those gains faded as the session progressed.