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Dow futures tick higher after Wednesday’s market rally

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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 trade after posting stronger than expected subscriber numbers and top profit estimates on the top and bottom lines. Shares of Sonos dropped 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 added 2.13% to 4,210.24, reaching its highest level since the beginning of May while the Nasdaq Composite gained 2.89% to 12,854.80, its highest closing price since late April.

The moves came after the headline consumer price index for July came in at 8.5%slightly below the 8.7% forecast by analysts polled by Dow Jones, raising questions about whether inflation has peaked and whether the Federal Reserve will need to raise interest rates as aggressively as expected 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.

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