New Delhi, Aug. 12 -- US stock indices bounced back on Wednesday after official data showed a moderation in inflation, easing concerns about a possible imminent Federal Reserve interest rate hike.

The Consumer Price Index rose 3.4% on a year-on-year basis in July, slowing from a 3.5% increase a month ago, according to US 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.

Markets have viewed a potential interest rate hike in September as a possible headwind for stocks.

Published by HT Digital Content Services with permission from MINT....