Inflation came in as expected, cooling slightly. The consumer price index was up 3.4% in July from a year earlier, lower than June’s 3.5%. Core prices excluding food and energy rose 2.5%, down from 2.6%.

Investors saw less urgency for the Fed to raise rates, with the probability of a September hike falling to 40% from 48% a day before. Stocks were mostly higher as AI names rallied. Cloud-computing company Core Weave and server company Super Micro Computer each rose 19%.

The S&P 500 gained 0.3%, the Nasdaq climbed 0.5% and the Dow was little changed. Wendy’s soared on a possible buyout. Nelson Peltz’s Trian Fund Management is working on an investor consortium to bid for the burger chain, sending shares up 15%.

Paramount is considering creating an editorial board for CNN to ensure its independence, amid a stalled deal to buy Warner Bros. Discovery due to an antitrust lawsuit. Meanwhile, individual investors are sitting on a mountain of cash—over $3 trillion in retail money-market funds.

Don Ross, a retired airline pilot, keeps 85% of his portfolio in stocks, rejecting bond funds. Financial planners struggle to get investors to part with their cash.