Stock futures were slightly higher early on Wednesday as Wall Street looks to make a positive start to 2023 so far.
Futures tied to the Dow Jones Industrial Average ticked up 30 points, or 0.09%. S&P 500 futures and Nasdaq 100 futures were little changed.
The Nasdaq Composite rose 1.01% on Tuesday to achieve 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 turned positive for the year.
The move has signaled a relief rally for riskier sectors of the market, such as tech, but many investors are still cautious ahead of earnings season and expectations for further rate hikes from the Federal Reserve.
“I think it will be a challenge to try to time when the Fed finally starts cutting rates. There is some evidence that better markets are ahead when the Federal Reserve starts to drop rates. But will it end? Used to be.” Sitting in the middle of January, at least for the end of 2024 or 2023, it’s a very tough position,” said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
There’s a lighter schedule for economic data on Wednesday, but investors will be gearing up for a key inflation report on Thursday and key bank earnings on Friday.