The July consumer inflation report released Wednesday confirmed a continued cooling trend in price increases across the economy, with the headline Consumer Price Index (CPI) coming in at 2.9% year-over-year, slightly below both the previous and expected 3%.

Core inflation, which excludes food and energy, also saw a modest decline from 3.3% to 3.2% year-over-year, aligning with economists' forecasts.

For investors, this signals that the Federal Reserve may have the green light to cut interest rates in September. However, the odds of a 25 basis point hike are slightly higher than those of a 50 basis point cut.

Wall Street had a...