Stock futures were slightly higher early Wednesday as Wall Street built on what has been a positive start to 2023 so far.
Futures for the Dow Jones industrial average rose 22 points, or 0.06%. S&P 500 futures and Nasdaq 100 futures were little changed.
Moves will follow The Nasdaq Composite rose 1.01% on Tuesday for its first three-day hitting streak since November. The S&P 500 and Dow rose 0.70% and 0.56%, respectively, and all three averages were positive for the young year.
The moves had a relief rally for riskier parts of the market such as technology, but many investors remain cautious ahead of earnings season and further expected rate hikes from the Federal Reserve.
“I think it’s going to be a challenge to try and time the Fed to eventually start cutting rates. There’s some evidence that the best markets are ahead when rates start coming from the Federal Reserve. But is that over? Late 2024 or 2023, at least at this point, mid-January.” Sitting down, it’s a very difficult situation,” said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
Wednesday has a light schedule for economic data, but investors are gearing up for a key inflation report on Thursday and key bank earnings on Friday.