Stock futures trading on Tuesday was lower as investors tried to maintain the momentum of early 2023 and anticipated more corporate profits.
Dow Jones Industrial Average futures were down 75 points, or 0.21%. Nasdaq-100 futures fell 0.4%, while S&P 500 futures fell 0.31%.
After enjoying a successful first two weeks of trading in the new year, all three major indices are up. The Nasdaq Composite is rising 5.9% as investors bought battered technology stocks in anticipation of a brighter future for growth stocks. Since the beginning of the year, the S&P 500 and the Dow Jones have risen 4.2% and 3.5%, respectively.
The gains followed the release of the first batch of inflation-related data, which investors interpreted as an indication of an economic slowdown and assuming it will justify the Federal Reserve halting interest rate hikes again. The consumer price index for December showed last week that while prices had declined 0.11% from the previous month, they were still 6.5% higher than a year earlier.
As earnings season kicks off, investor attention is shifting to corporate finance
Banks took center stage Friday as investors considered comments about the likelihood of a recession. Tuesday is scheduled to start with reports from Goldman Sachs, Morgan Stanley and United Airlines before the opening bell.
The world economy is a major topic of discussion at the World Economic Forum this week in Davos, so European markets were dovish on Tuesday.
Early trading saw the pan-European Stoxx 600 circling near its flatline, with autos gaining 0.5% and retail stocks losing a similar percentage.
All three major indices are up for the year after the first two weeks of trading in 2023.
The Nasdaq Composite led the way, rising 5.92%, as investors bought undervalued technology stocks in anticipation of a better environment for growth investing. The Dow Jones and S&P 500 rose 3.52% and 4.2%, respectively.
