Stock futures rose on Wednesday as Wall Street tried to regain ground after a tough first session of the year.
Futures linked to the Dow Jones Industrial Average rose 55 points, or 0.17%. S&P 500 and Nasdaq-100 futures rose 0.23% and 0.44%, respectively.
Sentiment was boosted in part by encouraging inflation data from Europe, including a larger-than-expected decline in French CPI and lower German import prices.
US stocks started 2023 on a downbeat note on Tuesday as rising concerns about interest rates, soaring inflation and fears of a recession crushed hopes that Wall Street would start the new year on a positive note. The S&P 500 and Nasdaq Composite lost 0.4% and 0.8%, respectively, while the Dow closed below break-even. Major indices were also pressured by sharp falls in Apple and Tesla stocks.
“US stocks were unable to hold on to previous gains as restrictive policies and recession fears remained front and center for investors,” Ed Moya, chief market analyst at Oanda, wrote in a note to clients on Tuesday. “Discount buying led to another bear market recovery that didn’t last long at all.”
Investors will gain more insight into what Fed members are thinking on Wednesday afternoon as minutes from the central bank’s latest policy meeting are released. Earlier in the day, the Employment Opportunity and Employment Turnover Survey, or JOLTS, and ISM manufacturing data are due.
The December jobs report will also be closely watched as it is the last reading in the labor market before the Federal Reserve meeting in February.
“It’s too early to start betting on the Fed’s pivot this year and that should make this a difficult environment for equities,” Moya said.
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