Dow futures inched higher in overnight trading on Wednesday after all the major averages posted sharp gains on the back of a better-than-expected inflation report.
Futures tied to the Dow Jones added 0.06% or 19 points, while S&P 500 futures and Nasdaq 100 futures inched 0.04% and 0.12% lower, respectively.
Disney added 6.7% in late trading after posting stronger-than-anticipated subscriber numbers and topping earning estimates on the top and bottom lines. Shares of Sonos slumped more than 19% after missing analysts’ expectations.
Wednesday’s regular trading session saw all the major indexes rally, with the Dow Jones Industrial Average jumping 535.10 points, or 1.63%, to close at 33,309.51. The S&P 500 added 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 since late April.
The moves came after the headline consumer price index for July came in at 8.5%, slightly cooler than the 8.7% expected by analysts surveyed by Dow Jones, and raised questions as to whether inflation has hit its peak and the Federal Reserve will need to hike rates as aggressively as anticipated when it meets next month.
Beaten-up tech shares that have borne the brunt of this year’s selloff drove Wednesday’s market rally as shares of Meta Platforms and Netflix jumped 5.8% and 6.2%, respectively. Battered chip names such as Nvidia and Advanced Micro Devices jumped nearly 6% and 4%, respectively.
“For today, we’re rallying, and I think it’s really because inflation has been such an overhang for investors and for the market,” Lindsey Bell, Ally Invest’s chief markets and money strategist told CNBC’s “Closing Bell” on Wednesday. “And I think what investors are thinking today is maybe the peak really has been put in the past.”
Earnings season continues Thursday with reports from Rivian, Warby Parker, Poshmark and more. July producer price index data is also slated for Thursday.