Stock futures were slightly higher early Wednesday as Wall Street looked to build on what has been a positive start to 2023 so far.
Futures contracts linked to the Dow Jones Industrial Average rose 30 points, or 0.09%. S&P 500 and Nasdaq 100 futures were little changed.
The moves come after the Nasdaq Composite rose 1.01% on Tuesday to clinch 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.
The moves have led to a recovery of relief for riskier areas of the market, such as technology, but many investors remain cautious ahead of the earnings season and further rate hikes expected from the Federal Reserve.
“I think it will be a challenge trying to time when the Fed finally starts to cut rates. There is evidence that when rates start to cut from the Federal Reserve, better markets are at hand. come in. But whether that ends up being 2024 or late 2023, at least at this point in mid-January, the situation is just too difficult,” said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
Wednesday presents a light calendar for economic data, but investors will brace for a key inflation report on Thursday and key bank earnings on Friday.