Dow futures were slightly higher early Thursday after all major averages posted strong gains on a better-than-expected July inflation report.
Dow Jones futures rose 0.21%, or 70 points, while S&P 500 and Nasdaq 100 futures rose 0.18% and 0.24%, respectively.
Disney added 6.7% in late trade after posting stronger-than-expected subscriber numbers and beating earnings estimates on the top and bottom lines. Sonos shares fell more than 19% after missing analysts’ expectations.
Wednesday’s regular trading session saw a rally in all the major indexes, with the Dow Jones Industrial Average jumping 535.10 points, or 1.63%, to close at 33,309.51. The S&P 500 rose 2.13% to 4,210.24 and hit its highest level since early May, while the Nasdaq Composite gained 2.89% to 12,854.80, its highest close high since the end of April.
The moves came after July’s general consumer price index came in at 8.5%, slightly lower than the 8.7% expected by analysts polled by Dow Jones, and raised questions about whether the inflation has reached its peak and the Federal Reserve will have to raise. rates as aggressive as expected when it meets next month.
Shrinking tech stocks that have suffered the brunt of this year’s selloff fueled Wednesday’s market rally, as shares of Meta Platforms and Netflix rose 5.8% and 6.2%, respectively. Battered chip names such as Nvidia and Advanced Micro Devices rose nearly 6% and 4%, respectively.
“For today, we’re recovering, and I think it’s really because inflation has been an overshoot for both investors and the market,” Lindsey Bell, head of markets and currency strategist at Ally Invest, said Wednesday on “Closing Bell ” from CNBC. “And I think what investors are thinking today is that maybe the peak really is in the past.”
Earnings season continues Thursday with reports from Rivian, Warby Parker, Poshmark and more. July producer price index data is also scheduled for Thursday.