Stocks rose on Wall Street on Wednesday.

A report showed U.S. inflation was not as bad as economists expected in August.

The S&P 500 gained 0.4% and is close to ending September with a small gain instead of a loss.

The Dow Jones Industrial Average was down 137 points, or 0.3%.

The Nasdaq composite was 0.9% higher.

The report said U.S. consumers paid 3.4% more in August for the cost of living than a year earlier.

That was below the 3.7% economists expected, though still above the Fed's 2% target.

It is the inflation measure the Federal Reserve prefers.

After the report, traders cut their bets that the Fed will raise its main interest rate next month.

They now see a 39% chance of that, down from about 50% a day earlier, according to CME Group.

Wall Street still faces pressure from the bond market.

The 10-year Treasury yield rose to 5.30% from 5.26% late Tuesday.

It had touched its highest level since 2002 on Tuesday.

The 30-year Treasury yield rose to 5.64% from 5.59%.

Higher yields slow the economy by making borrowing more expensive.

They also push down prices for many investments.

Worries about high inflation are only one reason yields have jumped.

The solid U.S. economy is also supporting them.

A report on Wednesday said growth was stronger in the spring than first estimated.

A separate report said Midwest business activity grew more than economists expected.

Oil prices also added pressure, with Brent crude rising 2.2% to $98.26 per barrel.

On Wall Street, Hewlett Packard Enterprise rose 5.5% after raising its revenue forecast for its networking business.

Nvidia added 1.4%.

MongoDB climbed 4.8% after its board added $1 billion to its stock buyback program.

Cal-Maine Foods fell 2.6% after the largest U.S. egg company reported a bigger quarterly loss than analysts expected.