Stock futures inched higher to start the week

A trader works on the trading floor of the New York Stock Exchange (NYSE), January 5, 2023.

Andrew Kelly | Reuters

Stock futures rose in overnight trade on Sunday after the major averages saw their first major rally of the new trading year.

Futures tied to the Dow Jones Industrial Average gained 37 points, or 0.11 percent, while S&P 500 and Nasdaq 100 futures added 0.16 percent and 0.25 percent, respectively.

The overnight moves followed Friday’s first major market rally of 2023. The Dow jumped 700 points, or 2.13%, while the S&P 500 and Nasdaq Composite added 2.28% and 2.56%, respectively, after the December report on jobs signals that inflation may be easing.

Nonfarm payrolls were slightly higher than expected, but wages grew at a slower pace than expected. That, along with data showing a contraction in the services sector, boosted hopes that the central bank’s interest rate hike is hitting its target.

Friday’s payrolls report and news of layoffs across industries suggest the labor market is softening, but the economy may still have work to do, according to Rick Reeder, BlackRock’s chief investment officer for global fixed income.

“We believe the moderation in employment conditions will continue, as parts of today’s report show, but we think there is still volatility in services labor demand that will continue for some time,” he said in a note on Friday.

All major averages ended Friday’s session with weekly gains, with the Dow and S&P posting their best week since November. The Dow and S&P hit their best day since Nov. 30, while the Nasdaq on Friday ended its best session since Dec. 29.

Monday kicks off a big week for economic data. The December CPI report is due on Thursday, followed by big bank earnings on Friday. On a closer note, the New York Fed’s consumer expectations survey along with consumer credit data are due on Monday. Wall Street will also hear comments from Atlanta Federal Reserve President Raphael Bostick.

#Stock #futures #inched #higher #start #week

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button