Stock futures rose on Wednesday evening as investors gained confidence in signs of easing inflation.

Futures tied to the Dow Jones Industrial Average rose by 36 points or 0.09%. S&P futures rose by 0.06%, while Nasdaq 100 futures rose by 0.12%.

This week’s encouraging inflation data has largely dispelled investors’ recession fears and led to a recovery in stock prices after last week’s sharp global sell-off.

In after-hours trading Cisco systems rose more than 5.5% after the company announced improved fourth-quarter earnings and revenue and global workforce reductions.

Several companies also took action after regulators’ 13F filings showed that closely watched investment managers were adding the stocks to their portfolios. Ulta Beauty Shares rose about 14% after Warren Buffett’s Berkshire Hathaway announced a new stake in the cosmetics company. Nike Shares rose about 4.8 percent after Bill Ackman’s Pershing Square announced a stake in the sneaker giant.

Stocks rose on Wednesday after the consumer price index reflected a slowing annual inflation rate of 2.9%, the lowest since 2021. That data – along with a key gauge of wholesale inflation released on Tuesday that rose less than expected – reassured investors that a soft economic landing is back in sight and that the Federal Reserve is likely to cut interest rates at its September meeting.

The consumer price index report confirms “a trend that has been evident for several months: the moderation of inflation toward a more normal level of price increases. This should continue to strengthen the Federal Reserve’s confidence that this part of its mandate has been kept under control over the long term,” said Rick Rieder, global head of fixed income investments at BlackRock.

Investors will be watching retail sales on Thursday for further insight into economic developments. While data releases are not usually major market drivers, recent bouts of volatility have given the reports additional importance. Walmart The results will be released on Thursday before the stock market opens, so consumer spending will be the focus.

The three major U.S. indexes are currently trading above their August 2 close, the session before the August 5 global stock market crash, which was largely driven by investor concerns about an economic slowdown and an unexpected unwinding of the yen carry trade.

This week, the 30-stock Dow Jones is up 1.3 percent, while the broad market index is up about 2 percent. The Nasdaq is up nearly 2.7 percent so far this week.