Stock futures rise slightly to start the week

A trader works on the floor of the New York Stock Exchange (NYSE), January 5, 2023.

andrew kelly | Reuters

Equity futures rose slightly in overnight trading on Sunday after major averages recorded their first big rally of the new trading year.

Futures tied to the Dow Jones Industrial Average gained 37 points, or 0.11%, while S&P 500 and Nasdaq 100 futures added 0.16% and 0.25%, respectively.

The overnight moves followed Friday’s first major market rally in 2023. The Dow Jones jumped 700 points, or 2.13%, while the S&P 500 and Nasdaq Composite added 2.28% respectively. and 2.56%, after the December jobs report signaled inflation may ease.

Non-farm payrolls were slightly higher than expected, but wages grew at a slower pace than expected. That, and data showing a contraction in the services sector, bolstered hopes that the central bank’s rate hikes hit their target.

Friday’s payrolls report and news of layoffs across all sectors suggest the labor market is softening, but the economy may still have some work to do, according to Rick Rieder, BlackRock’s chief investment officer for securities. global fixed income.

“We believe that the moderation in employment conditions will continue, as parts of today’s report show, but we believe that there is still rigidity in demand for labor in services, which will persist for some time,” he said in a note on Friday.

All major averages ended Friday’s session with weekly gains, with the Dow and S&P posting their best week since November. The Dow Jones and S&P closed their best day since Nov. 30, while the Nasdaq ended its best session since Dec. 29 on Friday.

Monday kicks off a big week for economic data. The December consumer price index report is due out on Thursday, followed by big bank earnings on Friday. In the shorter term, the New York Fed’s consumer expectations survey as well as consumer credit data are due out on Monday. Wall Street will also hear comments from Atlanta Fed President Raphael Bostic.

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