Stock futures were slightly higher early Wednesday as Wall Street looks to build on what has been a positive start to 2023 so far.
Futures linked to the Dow Jones Industrial Average rose 30 points, or 0.09%. S&P 500 and Nasdaq 100 futures have changed little.
Moves come after The Nasdaq Composite Index rose 1.01% on Tuesday to snap her first three-day winning streak since November. The S&P 500 and Dow are up 0.70% and 0.56%, respectively, and all three averages are positive for the new year.
Moves showed a comfortable rally to riskier areas of the market, such as technology, but many investors remain cautious ahead of earnings season and more hikes expected from the Federal Reserve.
“I think it’s going to be a challenge to try when the Fed eventually starts cutting rates. There is some evidence that when interest rates start to come down from the Fed, better markets lie ahead. But whether this ends up happening,” he said. Matthew Palazzolo, chief investment analyst at Bernstein Private Wealth Management: “In 2024 or late 2023, at least at this point in time, mid-January, it’s a very difficult situation.”
Wednesday features a light schedule of economic data, but investors will prepare for Thursday’s headline inflation report and major bank earnings on Friday.
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”