The S&P 500 and Nasdaq ended higher on Wednesday after data showing a moderate increase in consumer prices in August cemented expectations that the Federal Reserve will leave interest rates unchanged in September.

Megacap growth stocks Tesla, Meta Platforms , Microsoft and Amazon.com gained over 1 percent each. Apple dipped 1.2 percent, down for a second day after unveiling new iPhones on Tuesday while leaving prices unchanged.

The S&P 500 climbed 0.12 percent to end the session at 4,467 points. The Nasdaq gained 0.29 percent to 13,814, while the Dow Jones Industrial Average declined 0.20 percent to 34,576.

Ford Motor rallied 1.5 percent on the vehicle maker's plans to double the production of its hybrid F-150 pickup trucks in 2024.

Data showed consumer prices increased by the most in 14 months in August as gasoline prices surged, but the annual rise in underlying inflation was the smallest in nearly two years.

Stickiness in services inflation has kept alive prospects of a November hike. Interest rate traders now see a 97 percent chance of the Fed holding rates in September, and a 61 percent likelihood of a pause in November, according to the CME FedWatch Tool.

"I don't think the Fed wants to throw a shock and do a 25-basis-point hike when the expectations are that they won't, but rate hikes are not completely off the table for the rest of the year," said Victoria Fernandez, chief market strategist at Crossmark Global Investment.

US-listed shares of Chinese electric-vehicle makers Nio and Xpeng dropped 4.7 percent and 3.1 percent, respectively, after the European Commission started an investigation to assess whether their vehicles warrant punitive tariffs.

Sprit Airlines fell over 6 percent after the low-cost carrier cut its third-quarter revenue outlook to reflect rising fuel prices.

Moderna gained 3.2 percent after the drugmaker said its flu vaccine mRNA-1010 met the primary goal in a late-stage trial. The firm also announced it was scaling down manufacturing of its Covid-19 vaccine. (Reuters)