Palo Alto Networks Inc. shares rose alongside software stocks Wednesday, supported by softer-than-expected inflation data that reduced concerns about further Federal Reserve rate increases. The Bureau of Economic Analysis said the Fed’s preferred inflation gauge increased 0.3% from July to August, below economists’ 0.4% estimate. Yearly headline inflation held at 3.4%, matching the previous month’s revised reading and below the 3.7% consensus. CME FedWatch data showed a 52.9% probability of rates remaining unchanged at the Fed’s late-October meeting, compared with 47.1% for another quarter-point increase. A separate voluntary AI framework announced by President Donald Trump also appeared to ease investor concerns that rapidly advancing AI agents (software systems that perform tasks autonomously) could disrupt established software companies. Palo Alto Networks shares were up 2.92% at $399.75 at publication and were trading at a new 52-week high, according to Benzinga Pro.