Stock futures rose Tuesday evening after Wall Street started 2023 on a sour note.
Futures linked to the Dow Jones Industrial Average rose 0.04%, or 14 points, while S&P 500 and Nasdaq 100 futures rose 0.08% and 0.2%, respectively.
The overnight moves followed a lower session for stocks as worries about rising rates, high inflation and recession fears crushed hopes that Wall Street could start the new year with a positive note.
In regular trading Tuesday, the Nasdaq fell 0.76%, while the Dow Jones Industrial Average and the S&P 500 fell 0.03% and 0.4%, respectively. Tesla shares plunged more than 12% on the missing delivery figures, while Apple fell 3.7% on reports of production cuts.
Six of the 11 major S&P sectors closed lower, led by energy. The sector was the best performer in 2022 as oil prices boosted energy stocks. Communication services gained about 1.4%, led by Meta Platforms and Walt Disney.
“U.S. stocks failed to hold on to earlier gains as tight policy and recession fears remained front and center for investors,” wrote Oanda senior market analyst Ed Moya, in a note to clients on Tuesday. “The discount buying led to another bear market rally that didn’t last long.”
Many investors have expected the market to rebound after the major averages posted their worst year since 2008. The Federal Reserve and its tightening plan hang over the markets in the short term, along with fears of an impending recession .
Investors will get more information on what Fed members are thinking on Wednesday afternoon as minutes from the central bank’s latest policy meeting are released. Earlier in the day, manufacturing data from the Survey of Job Offers and Job Turnover, or JOLTS, and ISM are due to be released.
Friday’s December jobs report will also be closely watched as it is the last reading on the labor market before the Fed’s meeting in February.
“It’s too early to start betting on a Fed pivot this year and that should make this environment difficult for stocks,” Moya said.