Stock futures rose on Thursday as Wall Street was poised to rally for a second day after another better-than-expected inflation report.
Futures tied to the Dow Jones added 0.7% or 245 points, while S&P 500 futures and Nasdaq 100 futures climbed 0.6% and 0.7%, respectively.
Investor sentiment got a boost when the July producer price index showed a surprise decline month over month. PPI showed a decline of 0.5%, compared to an estimate of a 0.2% gain, according to a Dow Jones survey. The PPI reading excluding food and energy rose less than expected.
That reading follows an encouraging read on the consumer price index for July on Wednesday. CPI 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.
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.
“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 reports were also boosting futures. 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+.
Earnings season continues Thursday with reports from Rivian, Illumina, Poshmark and more.