Dow futures were higher in overnight trading on Wednesday after all major averages posted sharp gains on the back of a better-than-expected July inflation report.
Futures pegged to the Dow Jones were up 0.27% or 89 points, while S&P 500 futures and Nasdaq 100 futures were up 0.26% and 0.38%, respectively.
Disney added 6.7% in late trading after posting stronger-than-expected subscriber numbers and surpassing profit estimates on the top and bottom lines. Shares of Sonos plunged more than 19% after missing analyst expectations.
During Wednesday’s regular trading session, all major indices rallied, with the Dow Jones Industrial Average rising 535.10 points or 1.63% to close at 33,309.51. The S&P 500 rose 2.13% to 4,210.24, reaching its highest level since early May, while the Nasdaq Composite gained 2.89% to 12,854.80, its highest closing price since late April.
The moves came after the general consumer price index came in at 8.5% for July, slightly lower than the 8.7% analysts expected by Dow Jones, and raised the question of whether inflation has peaked and the Federal Reserve will have to raise rates as aggressively as expected when it meets next month.
Beaten up tech stocks that suffered from this year’s sell-off 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 were up nearly 6% and 4%, respectively.
“Today we’re rallying, and I think that’s really because inflation has been such an overhang for investors and for the market,” Lindsey Bell, Ally Invest’s principal markets and money strategist, told CNBC’s “Closing” on Wednesday. bell”. “And I think what investors are thinking today is that maybe the spike really was in the past.”
Earnings season continues Thursday with reports from Rivian, Warby Parker, Poshmark and more. The producer price indices for July are also scheduled for Thursday.