Traders work on the floor of the New York Stock Exchange.
Equity futures fell slightly on Monday evening as investors tried to continue to take advantage of the momentum of early 2023 and expected more corporate earnings.
Futures contracts linked to the Dow Jones Industrial Average lost 14 points, just below the fixed line. S&P 500 futures fell 0.1%, while Nasdaq-100 futures fell 0.2%.
All three major indexes are up after a positive first two weeks of trading in the new year. The Nasdaq Composite led the 5.9% rise as investors bought battered tech stocks amid rising hopes of an improving growth stock landscape. The S&P 500 and the Dow have gained 4.2% and 3.5% respectively since the start of the year.
The gains came on the heels of the first round of inflation-related data that investors saw as pointing to a shrinking economy, with hopes that will give the Federal Reserve justification to slow interest rate hikes again. ‘interest. Last week, the consumer price index for December showed prices were down 0.1% from the previous month, but were still 6.5% higher than the same month there. a year ago.
Investors’ attention is now turning to corporate finance as earnings season kicks off. Banks took center stage on Friday as investors digested comments about the likelihood of a recession. Goldman Sachs and Morgan Stanley are expected to report before the bell on Tuesday, followed by United Airlines after the market closes.
“Economic data has been good, to say the least, which we haven’t been afforded for the vast majority of the past year,” said senior analyst Craig Erlam. of the market at OANDA. “The question now is whether earnings season will bolster this newfound sense of hope or spoil the party before it really begins.”
Investors will also be watching closely for news from the World Economic Forum summit in Davos this week.