US equities futures climbed ahead of US inflation data on Wednesday, indicating that major indices are resuming this month’s rise.
Futures linked to the S&P 500 rose 0.4%, while the Dow Jones Industrial Average rose 0.3%. Contracts over the technology-heavy Nasdaq-100 rose 0.5%. Both the S&P 500 and the Dow closed lower on Tuesday after reaching a record high earlier this week.
Shares rose higher this month, with the benchmark S&P 500 reaching its eighth record of the year on Monday. Investors are betting that President Biden’s $ 1.9 billion stimulus package will help boost the economy, while vaccinations will help reduce Covid-19 deaths. Investor sentiment is also strong through the quarterly results of companies that appear to be better than expected.
“As long as revenue estimates rise, equities rise,” said Andrew Slimmon, managing director and portfolio manager of Morgan Stanley Investment Management. “The extent of the beatings we have seen is so great because the merits are underestimated.”
In off-the-clock trading, Lyft, the firm Lyft, rose 12% after suffering a smaller annual loss, indicating that the company is profitable. Twitter rose 3.5% after the social media company said it added users during the holiday period. Cisco Systems fell 5.4% after saying fiscal revenue and profit fell in the second quarter.