By Devik Jain

(Reuters) – The U.S. stock market indexes are expected to recover on Thursday after a sell-off of two days over signs that prolonged inflation was evident. Disney (NYSE) Co plunged due to slowing growth in streaming video services.

Investors booked gains from the recent gains and surging prices also drained risk appetite, and The Nasdaq ended their eight-session run of record closing highs this week.

Investors are concerned by inflation warnings coming from the United States and major economies, particularly due to a lack of market-moving triggers in the final quarter.

Premarket trading saw Walt Disney Co drop 4.8% to be at the top of declines in Dow components. It reported the lowest increase in Disney+ subscriptions ever since its launch, and also posted a downbeat profit in its theme park division.

Tesla Inc (NASDAQ:) Inc rose 2.6% after a 12.6% decline earlier in the week. This was despite filings showing that Elon Musk, Chief Executive Officer and Top Holder of Tesla stock, had recently sold approximately $5 billion.

Others mega-cap communications and technology stocks include Alphabet, which is owned by Google (NASDAQ:) Inc. Microsoft Corp (NASDAQ): Meta Platforms Inc., previously known as Facebook (NASDAQ), Apple Inc. (NASDAQ) and Amazon.com Inc. (NASDAQ) saw a rise of 0.3% to 0.8%.

Shares of big banks JPMorgan Chase & Co (NYSE:) and Bank of America (NYSE:), as well as industrials Boeing (NYSE:) Co and Caterpillar Inc (NYSE :), moved also higher.

At 7:04 am. ET rose 51 points (or 0.14%) and rose 17.5 points (or 0.38%), respectively. ET also increased 104.5 points (0.65%).

Rivian Automotive Inc., the Amazon-backed manufacturer of electric-vehicles, increased 4.9%. This is in addition to nearly 30% gains from its record-breaking trading debut.

Tapestry Inc (NYSE:) Inc increased 4.2% following the announcement Coach The handbag company raised its annual sales estimates due to strong demand for luxury items.

Market participants also watched developments surrounding the nominating of the Federal Reserve chair, while President Joe Biden is still considering whether to retain Jerome Powell or raise Fed Governor Lael Brainard.