New Delhi, Aug. 12 -- US stock indices recovered on Wednesday after official data showed inflation cooled in July, reducing concerns that the Federal Reserve could raise interest rates in the near term.

The Consumer Price Index (CPI) increased 3.4% year-on-year in July, slowing from a 3.5% rise in June, according to US government data.

In early trading, the Dow Jones Industrial Average was up 0.2% at 53,872.05. The broad-based S&P 500 rose 0.4% to 7,756.22, while the tech-rich Nasdaq Composite Index jumped 0.7% to 26,641.91.

Investors have been concerned that persistent inflation could prompt the Fed to raise interest rates in September, potentially creating a headwind for equities.

"This CPI report gives the market and the Fed the ch...