Traders work on the floor of the New York Stock Exchange.
Stock futures were slightly lower on Monday evening as investors looked to build on early 2023 momentum and anticipate more corporate earnings.
Futures tied to the Dow Jones Industrial Average lost 8 points, almost unchanged. S&P 500 futures fell by 0.1%, and Nasdaq-100 futures fell by 0.1%.
All three major indexes are coming off positive first two weeks of trading in the new year. The Nasdaq Composite led the way, up 5.9% as investors bought tech stocks amid hopes of an improving landscape for rising stocks. The S&P 500 and Dow are up 4.2% and 3.5%, respectively, year-to-date.
The gains came on the back of the first inflation data, which investors saw as evidence of a shrinking economy in hopes that the Federal Reserve would be justified in slowing rate hikes again. Last week, the consumer price index for December showed that prices fell by 0.1% compared to the previous month, but prices were still 6.5% higher than in the same month last year.
Investor attention is now turning to corporate financials as earnings season begins. Banks focused on Friday as investors digested comments about the possibility of a recession. Goldman Sachs and Morgan Stanley are set to report before the bell on Tuesday, followed by United Airlines after the market close.
“The economic data has been kind to say the least, something we haven’t been allowed to do for the vast majority of the past year,” said Craig Erlam, senior market analyst at OANDA. “The question now is whether earnings season will fuel that new sense of hope or spoil the party before it really gets started.”
Investors will also be keeping a close eye on news from this week’s World Economic Forum summit in Davos.