Stock futures rose on Thursday after all major averages posted sharp gains in the previous session on the back of a better-than-expected July inflation report.
Dow Jones futures added 0.4%, or 135 points, while S&P 500 futures and Nasdaq 100 futures rose 0.4% and 0.3%, respectively.
Disney shares rose more than 7% in premarket trading after the media giant Posted stronger-than-expected subscriber numbers Last quarter, revenue and earnings exceeded expectations. Disney also said it will raise prices for Disney+.
All major indexes were up in the regular trading session on Wednesday, with the Dow Jones Industrial Average up 535.10 points, or 1.63%, to end at 33,309.51. The S&P 500 added 2.13% to 4,210.24 The highest level since early May, while the Nasdaq Composite rose 2.89% to 12,854.80, its highest finish since late April. The S&P 500 has now rallied more than 15% from its mid-June bear market low and is now 12% off its record high.
The rally was driven by the belief that inflation was peaking The Consumer Price Index for July was 8.5%.That was slightly cooler than the 8.7% expected by analysts polled by Dow Jones and slowed from the previous month.
“We’re rallying, and I think it’s really because inflation is too much for investors and the market,” Lindsay Bell, Ally Invest’s chief markets and money strategist, told CNBC’s “Closing Bell” on Wednesday.
Earnings season continues Thursday with reports from Rivian, Warby Parker, Boshmark and more. July producer price index data is also scheduled for Thursday.