NEW YORK (AP) — Wall Street is holding relatively steady Wednesday after the latest update on inflation came in almost exactly as economists expected.

The S&P 500 was edging up by 0.3% in midday trading, coming off one of its best days of the year. The Dow Jones Industrial Average was up by 184 points, or 0.5%, as of 11:35 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.

Treasury yields were also easing a bit in the bond market after initially wavering when the U.S. government said consumers paid prices that were 2.9% higher last month for gasoline, food, shelter and other things than a year earlier.

The data should keep the Federal Reserve on track to cut its main interest rate at its next meeting in September, a move that Wall Street has long been looking forward to. The Fed has been keeping rates at an economy-crunching level in hopes of stifling inflation that topped 9% two years ago, and lower rates would ease the pressure on both the economy and on prices for investments.

The only question is how big the first cut to rates since the 2020 COVID crash will be: the traditional quarter of a percentage point or a more dramatic half point?

Wednesday’s reading on inflation at the consumer level wasn’t as cool as the prior day’s update on inflation at the wholesale level, but it likely doesn’t change much, according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

If most of the data over the next few weeks points to a slowing economy, he said the Fed may cut more aggressively. That includes a report coming up Thursday about how much U.S. shoppers spent at retailers.

While the economy is still growing, and many economists see a recession as unlikely, worries have risen about its strength after a much worse-than-expected month of hiring by U.S. employers in July.

The yield on the 10-year Treasury eased to 3.81% from 3.85% late Tuesday. It’s been coming down since topping 4.70% in April, as expectations have built for coming cuts to interest rates.

The two-year yield, which more closely tracks expectations for the Fed, was steady at 3.94%, where it was late Tuesday, as traders weigh whether September’s anticipated cut will be the traditional or jumbo-sized move.

On Wall Street, Kellanova rose 7.7% after Mars said it would buy the company behind Pringles, Cheez-Its and Kellogg’s for $83.50 per share in cash. The companies put the deal’s total value at $35.9 billion, including debt. Kellanova was created when the Kellogg Co. split into three companies in the summer of 2022.

Cardinal Health rose 5.2% after joining the parade of companies that have reported stronger profit for the spring than analysts expected.

On the losing end was Brinker International, the company behind Chili’s and Maggiano’s restaurants. It fell 11.9% after reporting weaker profit for the latest quarter than expected. That was despite strengthening sales trends at Chili’s, which got a boost from higher prices, increased traffic and the launch of its “Big Smasher” burger. Expectations were high coming into the report for Brinker International, whose stock is still up nearly 44% for the year so far.

Starbucks fell 4.1% to give back some of its big gain from the prior day after it said it had lured Brian Niccol away from Chipotle Mexican Grill to become its CEO.

In stock markets abroad, indexes were modestly higher across much of Europe and mixed in Asia.

Japan’s Nikkei 225 has been the center of financial markets’ wildest action in recent weeks, and it rose a relatively modest 0.6% following a day of ups and downs. Japan’s embattled Prime Minister Fumio Kishida surprised the country Wednesday by announcing he’ll step down when his party picks a new leader next month.