US futures rose on Wednesday ahead of US inflation data, suggesting key indices will resume this month’s rally.
S&P 500 futures rose 0.4%, while Dow Jones Industrial Futures gained 0.3%. Contracts for heavy-duty Nasdaq-100 technology advanced 0.5 percent. Both the S&P 500 and the Dow closed on Tuesday, after hitting record highs earlier this week.
Shares rose this month, with the S&P 500 hitting its eighth record of the year on Monday. Investors are betting that President Biden’s $ 1.9 trillion stimulus package will help strengthen the economy, while vaccinations will help reduce the number of deaths in Covid-19. Investor sentiment was also supported by the quarterly results of the companies, which proved to be much better than expected.
“As earnings estimates grow, stocks grow,” said Andrew Slimmon, general manager and portfolio manager at Morgan Stanley Investment Management. “The magnitude of the gains we’ve seen are so large because the gains have been underestimated.”
In off-hours trading, Lyft grew 12% after a narrower annual loss, suggesting that the company is moving towards profitability. Twitter rose 3.5 percent after the social media company said it added users during the holidays. Cisco Systems fell 5.4% after declaring second-quarter tax revenue and profit to decline.