Dow futures rise after Wednesday’s market rally

Dow Jones futures were higher in overnight trade on Wednesday after all major averages posted strong gains on a better-than-expected July inflation report.

Dow Jones-linked futures added 0.27% or 89 points, while S&P 500 and Nasdaq 100 futures rose 0.26% and 0.38%, respectively.

Disney added 6.7% late in the session after posting stronger-than-expected subscriber numbers and beating revenue estimates on both the top and bottom lines. Sonos shares fell more than 19% after missing analysts’ expectations.

Wednesday’s regular trading session saw all 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 gained 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 polled by Dow Jones, and raised questions about whether inflation has peaked and the Federal Reserve will need to rise. rate as aggressively as expected at its meeting next month.

The battered tech stocks that bore the brunt of this year’s sell-off led Wednesday’s market rally, with shares of Meta Platforms and Netflix surging 5.8% and 6.2%, respectively. Beaten chip names such as Nvidia and Advanced Micro Devices jumped nearly 6% and 4%, respectively.

“For today, we’re pulling ourselves together, and I think it’s really because inflation has been such an overhang for investors and for the market,” Lindsey Bell, head of markets and currency strategist, said Wednesday. ‘Ally Invest at CNBC. “And I think what investors are thinking today is maybe the spike was really placed in the past.”

Earnings season continues Thursday with reports from Rivian, Warby Parker, Poshmark and more. July’s producer price index data is also scheduled for Thursday.

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