Ticker: States waiving taxes due to high gas prices

The day’s business news at a glance

State officials nationwide are focusing on rising gas and diesel prices tied to the war in Iran. They're offering gas tax holidays and other measures to ease costs as affordability remains a top voter concern in the critical midterm elections.

Lawmakers in Ohio passed a 90-day state gas tax holiday with broad bipartisan support on Wednesday. Ohio is among about one-third of states that have implemented some form of fuel tax relief, with many taking action within the past week. Some states have suspended their fuel taxes. Others have temporarily reduced taxes.

Senate punts bill to ban Chinese cars

A bill aiming to permanently ban the sale of Chinese vehicles in the United States stalled in the Senate as lawmakers headed for the exits until after the November midterm elections.

The bipartisan bill, sponsored by Republican Sen. Bernie Moreno of Ohio and Democratic Sen. Elissa Slotkin of Michigan, aims to prevent China's auto industry from gaining a foothold in the U.S. market. It gained renewed energy last week during the summit in Washington between Chinese President Xi Jinping and President Donald Trump.

Inflation cooled slightly last month

Inflation slowed a bit last month as Americans ramped up their spending, though price gains remained elevated and are a challenge for many voters as the midterm elections approach.

The Commerce Department said Wednesday that consumer prices rose 3.4% in August compared with a year earlier, below the 3.7% economists had forecast. On a monthly basis, prices climbed 0.3%, up from 0.1% in July, a sign prices that are still running hot. Excluding the volatile energy and food categories, inflation also came in lower than expectations, rising 3% in Agusut from a year ago.

Trump plugs $54 billion natural gas project

President Donald Trump said South Korea plans to invest about $54 billion in a natural gas project in Alaska. He made the announcement in the Oval Office on Wednesday, flanked by Republican Senator Dan Sullivan, who faces a tough reelection race in the state.

It was the second time this week that Trump has sought to elevate Senate candidates in states he won comfortably each time he ran for president. Trump made a similar announcement on Monday for a massive steel plant in Iowa. In Alaska, Sullivan faces a competitive challenge from Democrat Mary Peltola, a former congresswoman.

FTC is investigating OpenAI and Anthropic

The U.S. Federal Trade Commission has opened an investigation into OpenAI, Anthropic and other artificial intelligence companies over dangers their technology may pose to consumers, the agency said Wednesday.

The AI giants and other tech companies in recent months have disclosed examples of their AI agents going beyond human instructions, finding their way onto the internet and hacking external websites.

US economy grew in the second quarter

The U.S. economy grew at a solid 2.2% pace from April through June as consumer spending and business investment came in strong. Growth in gross domestic product -- the nation's output of a goods and services -- decelerated slightly a 2.5% pace from January through March, the Commerce Department reported Wednesday.

The second-quarter growth number was an improvement on the department's previous estimate of 1.5%. Consumer spending -- which accounts for about 70% of U.S. economic activity -- increased at a healthy 3.8% annual pace, up from 0.7% in the January-March period.

Most US stocks fall after the bond market cranks the pressure higher

Most U.S. stocks fell as Wall Street contended with the downside of a U.S. economy that keeps powering through its many challenges. The S&P 500 slipped 0.3% Wednesday to close out its third losing month in the last four. The Dow Jones Industrial Average fell 0.9%, and the Nasdaq composite climbed 0.2%. Stocks initially headed for gains following an encouraging update on inflation. But they turned lower as reports also suggested the U.S. economy was stronger during the spring than earlier thought. That helped yields remain high in the bond market, which in turn kept up the pressure on stocks.