By Devik Jain
(Reuters) – U.S. stock indexes were set to rebound on Thursday from a two-day selloff over signs of prolonged inflation, while Walt Disney Co tumbled as growth slowed in its streaming video service.
The S&P 500 and the Nasdaq snapped their eight-session runs of all-time closing highs earlier this week as investors booked profits from recent gains, while surging price pressures also dented risk appetite.
Inflation warnings this week from the United States and other major economies have been a top concern for investors, especially due to the lack of market-moving catalysts as the third-quarter earnings season wraps up.
Walt Disney Co dropped 4.8% in premarket trading to lead declines among Dow components, as it reported the smallest rise in Disney+ subscriptions since the service’s launch and posted downbeat profit at its theme park division.
Tesla Inc gained 2.6% to claw back some ground lost in its 12.6% drop earlier in the week, even after filings showed Chief Executive and top holder Elon Musk had sold about $5 billion of the stock over recent days..
Other mega-cap technology and communications stocks including Google-owner Alphabet Inc, Microsoft Corp, Meta Platforms Inc, formerly known as Facebook, Apple Inc and Amazon.com Inc rose between 0.3% and 0.8%.
Shares of big banks JPMorgan Chase & Co and Bank of America, as well as industrials Boeing Co and Caterpillar Inc, also moved higher.
At 7:04 a.m. ET, Dow e-minis were up 51 points, or 0.14%, S&P 500 e-minis were up 17.5 points, or 0.38%, and Nasdaq 100 e-minis were up 104.5 points, or 0.65%.
Amazon-backed electric-vehicle maker Rivian Automotive Inc jumped 4.9%, adding to the nearly 30% gain on its blockbuster trading debut.
Tapestry Inc gained 4.2% after the Coach handbag maker raised its annual sales forecast, boosted by a strong rebound in demand for luxury goods.
Market participants were also watching developments around the nomination of the Federal Reserve Chair, with President Joe Biden still weighing whether to keep Jerome Powell for a second term or elevate Fed Governor Lael Brainard to the post.
(Reporting by Devik Jain in Bengaluru; Editing by Aditya Soni)
