Following a disappointing start to 2023 on Wall Street, stock futures edged up on Tuesday evening.
The Dow Jones Industrial Average futures increased by 0.04%, or 14 points, while the S&P 500 and Nasdaq 100 futures both traded in the money and increased by 0.08% and 0.2%, respectively.
The overnight movements came after a session in which equities declined as fears of a recession, high inflation, and rising rate concerns dashed hopes that Wall Street might start the new year off well.
The Nasdaq fell 0.76% during regular trade Tuesday, while the Dow Jones Industrial Average and S&P 500 fell 0.03% and 0.4%, respectively.
On disappointing delivery data, Tesla’s stock sank more than 12%, while Apple’s stock dropped 3.7% in response to news of manufacturing reductions.
Energy was the main contributor to the decline in six out of the 11 significant S&P sectors.
Due to rising energy stock prices in 2022, the sector had the best performance.
1.4% was the gain for communication services, with Meta Platforms and Walt Disney leading the way.
In a message to clients on Tuesday, senior market analyst Ed Moya of Oanda stated that “restrictive policy and recession fears remained front and center for investors, and U.S. stocks were unable to hold onto earlier gains.”
A bear market comeback that was brought about by discount buying “didn’t last at all.”
After the major averages recorded their worst year since 2008, many investors hoped the market would recover.
In the foreseeable future, concerns about an impending recession and the Federal Reserve’s tightening agenda loom over the markets.
When the minutes from the Fed’s most recent policy meeting are released on Wednesday afternoon, investors will learn more about what the members of the central bank are thinking.
The Job Openings and Labor Turnover Survey, or JOLTS, and ISM manufacturing figures are scheduled for release earlier in the day.
Since it is the final assessment of the labor market before the Fed meeting in February, Friday’s release of the December jobs report will be extensively scrutinized.
The Fed should not shift this year, and that should create a challenging environment for markets, according to Moya.