Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on January 26, 2023 in New York City.
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Stock futures were slightly higher in overnight trading as the S&P 500 looks to end its best performance January since 2019.
Futures linked to the S&P 500 Index rose 0.26%, while futures linked to the Dow Jones Industrial Average gained 0.15%, or 49 points. Nasdaq 100 futures rose 0.28%.
The overnight moves followed a pause in what had been a stellar January for stocks. During normal trading, the Dow Jones fell 260.99 points, or 0.77%, while the S&P and Nasdaq Composite fell 1.30% and 1.96%, respectively.
Stocks rallied to start the year after the brutality of 2022 – and Worst year for stocks since 2008. As of Monday’s close, the S&P and Dow were up 4.64% and 1.72% in January, respectively, heading for the third positive month in four. The Nasdaq Composite is up 8.86% this month, putting it on track for its best monthly performance since July.
“The reason I’m optimistic about the stock to start the year is because the reviews have been mostly behind us, and people are getting very negative…” “That’s not the case. We have a eroding and sluggish backstory, not a backtracking,” Trivariate Research’s Adam Parker told CNBC. go down.”
A strong January could be a good sign for the market, and It is likely to portend a continuous increase in the following months. Of the five instances where the S&P rose more than 5% in January after a negative year, the benchmark index rose 30% for the year on average, said Ryan Dietrick of Carson Group. in a tweet.
However, a busy week for earnings, with reports from the likes of McDonald’s, Meta Platforms and Amazon, could put this latest rally at risk. Investors are watching closely for comments on the performance of some of the largest companies amid rising inflation and fears of slowing consumer spending.
Attention is also shifting to the latest interest rate decision due to the latest Federal Reserve policy meeting which began on Tuesday. Traders widely expect a 25 basis point increase, but will monitor the comments for clues about how far the Fed intends to hike, or when it plans to cut rates.
Companies that reported earnings on Tuesday include McDonald’s, Caterpillar, General Motors, Pfizer and Advanced Micro Devices.
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