Stock futures edged higher in after-hours trading on Wednesday, with investors gaining optimism from encouraging inflation data. The consumer price index report revealed a slowing annual inflation rate of 2.9%, marking the lowest level since 2021. This development has alleviated concerns over a potential economic slowdown and reassured market participants that an economic soft landing is still possible.

Cisco Systems experienced a significant surge of over 5% in after-hours trading after reporting a fiscal fourth-quarter earnings and revenue beat. The networking company also announced plans to cut its global workforce by 7%, indicating a proactive approach towards cost optimization and efficiency.

Investors' attention was drawn to several companies following 13F regulatory filings that revealed investment managers adding new stakes to their portfolios. Ulta Beauty shares popped more than 13.5% after Warren Buffett's Berkshire Hathaway reported a new position in the cosmetics company worth $266 million. Nike shares also saw a positive move, rising approximately 3%, after Bill Ackman's Pershing Square revealed a position in the sneaker giant.

The retail sales data scheduled for release on Thursday will provide further insights into the direction of the economy. Although economic data releases typically do not have a significant impact on markets, recent volatility has amplified their importance. Additionally, Walmart earnings are set to be released before market open on Thursday, placing a spotlight on consumer spending trends.

The three major U.S. indexes have rebounded since their decline last week, with the Dow Jones Industrial Average up by 1.3%, the broad-market index adding around 2%, and the Nasdaq gaining nearly 2.7% so far this week. These positive movements suggest a renewed confidence among investors and a shift towards optimism regarding the economic outlook.

As equity futures opened in the green during after-hours trading, market participants remain vigilant for any developments that may influence market dynamics. Investors will continue to monitor economic data releases and corporate earnings reports closely for further indications of market trends and potential investment opportunities.