(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)

US equity indexes fell while most government bond yields rose after the Federal Reserve's preferred inflation gauge accelerated sequentially in July and as investors awaited Nvidia's (NVDA) quarterly earnings post-bell.

The Nasdaq Composite slipped 0.2% to 26,101.2, the Dow Jones Industrial Average fell 0.3% to 53,439.5 and the S&P 500 edged 0.1% lower to 7,667.3 after midday Wednesday. Energy and industrials topped gainers while consumer discretionary and communication services led decliners.

In economic news, the headline personal consumption expenditure price index rose by 0.2% in July, following a 0.1% decline in the prior month, the Bureau of Economic Analysis reported Wednesday. That's above the consensus for a 0.1% gain in a Bloomberg-compiled survey, keeping the annual headline rate at 3.7%, which also exceeded the expected 3.6% print.

The Fed's preferred core measure, which excludes food and energy, climbed 0.2%, as expected. That's faster than the June print of 0.1%. The annual core gauge held steady at 3.3%, as projected.

Most US Treasury yields rose. The 10-year yield rose 1.5 basis points to 4.65% and the two-year climbed 1.2 basis points to 4.22%.

The Iranian military said it reached a revenue-sharing deal with Oman on the Strait of Hormuz, Bloomberg reported.

"Agreements have been reached regarding each country's share of the strait's waters as well as Iran and Oman's share of its revenues," Bloomberg cited the Islamic Revolutionary Guard Corps' spokesman Hossein Mohebbi on Wednesday as telling the state-run Sepah News agency.

The front-month US West Texas Intermediate crude oil contract gained 0.9% to $83.08 per barrel, and global benchmark North Sea Brent rose 0.5% to $89.05 per barrel.