Stock futures rose on Wednesday as Wall Street looked to build on what has been a positive start to 2023 so far.
Futures linked to the Dow Jones Industrial Average advanced 92 points, or 0.3%. S&P 500 and Nasdaq 100 futures gained 0.3%.
The moves come after the Nasdaq Composite rose 1.01% on Tuesday to snap its first three-day winning streak since November. The S&P 500 and Dow rose 0.70% and 0.56%, respectively, and all three averages are positive for the young year.
2023 has so far brought some relief to riskier areas of the market, such as technology, but many investors remain cautious ahead of earnings season and further expected rate hikes from the Federal Reserve.
“I think it’s going to be a challenge trying to get to the point where the Fed finally starts cutting rates,” said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management. “There is some evidence that when rates start coming down from the Federal Reserve, there are better markets ahead. But whether that ends up being 2024 or late 2023, at least at this point in mid-January, it’s too . a difficult situation.”
Wednesday features a light calendar for economic data, but investors will brace for a key inflation report on Thursday and top bank earnings on Friday.