Stock futures rose Wednesday as Wall Street looked to build on what has been a positive start to 2023 so far.
Futures tied to the Dow Jones Industrial Average advanced 92 points, or 0.3%. S&P 500 and Nasdaq 100 futures each gained 0.3%.
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.
2023 has brought a relief rally so far for more risky areas of the market, such as tech, but many investors are still cautious ahead of earnings season and further expected rate hikes from the Federal Reserve.
“I think it is going to be a challenge to try to time when the Fed will ultimately start to cut rates,” said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management. “There is some evidence that when rates start to decline from the Federal Reserve, better markets are ahead. But whether that ends up being in 2024 or late 2023, at least at this point in time, sitting in the middle of January, it’s just too a difficult situation.”
Wednesday features a light schedule for economic data, but investors will be gearing up for a key inflation report on Thursday and major bank earnings on Friday.