The Dow Jones Industrial Average edged lower for a third straight session on August 12, closing down 21.58 points at 53,770.27, while the Nasdaq Composite rebounded 143.04 points to 26,588.49 after two days of declines. July CPI data from the U.S. Labor Department, released before the open, came in broadly in line with market expectations and helped calm fears of accelerating inflation. That reinforced expectations that the Federal Reserve may still have room to cut interest rates, lifting sentiment and drawing money into growth stocks. Even so, caution persisted as uncertainty over the Middle East clouded the outlook for energy prices and logistics, leading to renewed selling toward the close. Microsoft and Nike fell, while Nvidia attracted buying and supported the broader market. Market participants said the CPI figures were a tailwind for equities, though investors were still waiting for greater clarity on the Middle East situation, and some noted that the Dow's relatively limited decline suggested dip-buying had become easier to justify after the initial selling wave.