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 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 in 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 to cut interest rates. There is some evidence that when rates start to come down from the Fed, better markets are ahead. But whether that ends up being the case. “In 2024 or late 2023, at least at this point in time, mid-January, it’s a very difficult situation,” said Matthew Palazzolo, chief investment analyst at Bernstein Private Wealth Management.
Wednesday features a light schedule of economic data, but investors will prepare for Thursday’s headline inflation report and major bank earnings on Friday.
“Beer aficionado. Gamer. Alcohol fanatic. Evil food trailblazer. Avid bacon maven.”