Dow futures are ticking higher after Wednesday’s market rally

Dow futures were higher early Thursday after all the major averages posted strong gains on the back of a better-than-expected July inflation report.

Futures linked to the Dow Jones gained 0.29% or 95 points, while S&P 500 futures and Nasdaq 100 futures rose 0.27% and 0.38% respectively.

Disney added 6.7% in late trade after posting stronger-than-expected subscriber numbers and topping top- and bottom-line earnings estimates. Shares in Sonos fell more than 1[ads1]9% after missing analysts’ expectations.

Wednesday’s regular trade saw all the major indexes rise, 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, hitting its highest level since early May, while the Nasdaq Composite added 2.89% to 12,854.80, its highest level 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 about whether inflation has peaked and the Federal Reserve will need to hike. rates as aggressively as expected when it meets next month.

Bankrupt technology stocks that have borne the brunt of this year’s sell-off drove Wednesday’s market rally as shares of Meta Platforms and Netflix rose 5.8% and 6.2% respectively. Batted chip names such as Nvidia and Advanced Micro Devices jumped nearly 6% and 4%, respectively.

“Because 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” Wednesday. “And I think what investors are thinking today is maybe the peak has really been set in the past.”

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

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