Stock futures rose Tuesday evening after Wall Street started 2023 in a bad way.
Futures tied to the Dow Jones Industrial Average rose 0.04%, or 14 points, while the S&P 500 and Nasdaq 100 futures traded flat, up 0.08% and 0.2%, respectively.
The overnight moves came on the heels of a bearish session for stocks as rising worries about rates, high inflation and fears of a recession crushed hopes that Wall Street would start the new year on a positive note.
During normal trading on Tuesday, the Nasdaq was down 0.76%, while the Dow Jones Industrial Average and the Standard & Poor’s 500 were down 0.03% and 0.4%, respectively. Tesla shares fell more than 12% Delivery numbers that exceeded expectationsWhile Apple shares fell 3.7 percent on reports of production cuts.
Six of S&P’s 11 sectors closed lower, dragging energy prices lower. The sector was the best performing in 2022 as oil prices boosted energy stocks. Telecom Services rose about 1.4%, led by Meta Platforms and Walt Disney.
“US stocks were unable to hold on to previous gains as restrictive policy and recession fears remained front and center for investors,” Ed Moya, chief market analyst at Oanda, wrote in a note to clients on Tuesday. “Discount buying led to another bear market recovery that didn’t last long at all.”
Many investors were hoping the market would bounce back yet The major averages had their worst year since 2008. The Federal Reserve and its tightening plan hangs over markets in the near term, along with fears of a looming recession.
Investors will gain more insight into what Fed members are thinking on Wednesday afternoon as minutes from the central bank’s latest policy meeting are released. Earlier in the day, the Employment Opportunity and Employment Turnover Survey, or JOLTS, and ISM manufacturing data are due.
The December jobs report will also be closely watched as it is the last reading of the labor market before the Federal Reserve meeting in February.
“It’s too early to start betting on the Fed’s pivot this year and that would make this a challenging environment for equities,” Moya said.
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”