Stock futures rose on Thursday after all the major averages posted sharp gains in the prior session on the back of a better-than-expected July inflation report.
Futures tied to the Dow Jones added 0.5% or 153 points, while S&P 500 futures and Nasdaq 100 futures climbed 0.3% and 0.2% higher, respectively.
Disney shares jumped more than 8% in premarket trading after the media giant posted stronger-than-anticipated subscriber numbers for the last quarter, along with earnings and revenue that topped expectations. Disney also said it would raise prices for Disney+.
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 S&P 500 has now rallied more than 15% off its mid-June bear market low and now sits 12% off its record high.
Hopes that inflation is peaking drove the rally after the consumer price index for July came in at 8.5%, slightly cooler than the 8.7% expected by analysts surveyed by Dow Jones and a slowing pace from the prior month.
“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.
Earnings season continues Thursday with reports from Rivian, Illumina, Poshmark and more. July producer price index data is also slated for Thursday.