S&P 500 closes higher as US inflation cements Fed pause bets

Reuters) - The S&P 500 and Nasdaq indexes finished higher on Wednesday, after data showing a moderate rise in consumer prices in August cemented expectations that the Federal Reserve will keep interest rates unchanged in September.
Mega-cap growth stocks such as Tesla, Meta, Microsoft and Amazon.com each gained more than 1%.
Apple fell 1.2%, falling for a second day after launching new iPhones on Tuesday, leaving prices unchanged.
The Dow Jones fell 0.20% to 34,575.53 points. The S&P 500 rose 0.12% to 4,467.44 points. The Nasdaq technology index gained 0.29% to 13,813.59 points.
Data showed that U.S. consumer prices rose at the strongest pace in 14 months in August as gasoline prices rose, but the annual rise in core inflation was the smallest in nearly two years.
The rigidity of inflation in services kept the prospects of a rise in November alive. Rate traders now see a 97% probability of the Fed maintaining the benchmark rate in September and a 61% probability of a pause in November, according to CME's FedWatch tool.
The S&P 500 utilities index gained 1.2% as the traditionally defensive sector's rebound suggested investor nervousness ahead of producer price and retail sales data due Thursday, which could influence policy decision Fed monetary policy on September 20th.