Traders work on the floor of the New York Stock Exchange.
Stock futures traded lower on Tuesday morning as investors tried to continue to ride the momentum of early 2023 and waited for more corporate earnings.
Futures linked to the Dow Jones Industrial Average lost 54 points, or 0.16%. S&P 500 futures fell 0.32%, while Nasdaq-100 futures fell 0.51%.
All three major indices are rising after a positive first two weeks of trading in the new year. The Nasdaq Composite is leading the way up 5.9% as investors bought battered technology stocks amid rising hopes for an improved outlook for growth stocks. The S&P 500 and the Dow Jones have advanced 4.2% and 3.5%, respectively, since the beginning of the year.
The gains have come on the back of the first crop of inflation-related data that investors saw as an indication of a contracting economy, hoping that would give the Federal Reserve justification to rein in rate hikes. interest once again. Last week, the December Consumer Price Index showed prices cooled 0.1% from the previous month, but prices were still 6.5% higher than the same month last year.
Investor focus now turns to corporate finance as earnings season gets underway. Banks took center stage on Friday as investors digested comments about the likelihood of a recession. Goldman Sachs and Morgan Stanley are set to report before the bell on Tuesday, followed by United Airlines after the market closes.
“Economic data has been kind to say the least, something we didn’t have for the vast majority of the year just ended,” said Craig Erlam, senior market analyst at OANDA. “The question now is whether earnings season will add to that newfound sense of hope or crash the party before it really gets started.”
Investors will also be watching for news from the World Economic Forum meeting in Davos this week.