U.S. stock futures climbed Wednesday ahead of U.S. inflation data, suggesting that the major indexes will resume this month’s rally.
Futures tied to the S&P 500 rose 0.4%, while Dow Jones Industrial Average futures gained 0.3%. Contracts on the technology-heavy Nasdaq-100 advanced 0.5%. Both the S&P 500 and the Dow closed lower on Tuesday after notching record highs earlier in the week.
Stocks have pushed higher this month, with the benchmark S&P 500 notching its eighth record close of the year on Monday. Investors are betting that President Biden’s $1.9 trillion stimulus package will help bolster the economy while vaccinations help reduce Covid-19 fatalities. Investor sentiment has also been buoyed by companies’ quarterly results that have largely proved to be better than expected.
“As long as earnings estimates are going up, stocks are going up,” said Andrew Slimmon, a managing director and portfolio manager at Morgan Stanley Investment Management. “The magnitude of the earnings beats we have seen are so great because earnings have been way underestimated.”
In off-hours trading, ride-hailing firm Lyft rose 12% after posting a narrower annual loss, suggesting the company is moving toward profitability. Twitter rose 3.5% after the social-media company said it added users through the holiday period. Cisco Systems fell 5.4% after it said that fiscal second-quarter revenue and profit declined.