Traders on the NYSE floor, Oct. 21, 2022.
Source: New York Stock Exchange
Stock futures were higher on Tuesday as Wall Street tried to start the new year on a high note. Traders also braced themselves for a series of economic data to be released this week.
Futures tracking the Dow Jones Industrial Average rose 300 points, or 0.9%. S&P 500 futures were up 1% and Nasdaq 100 futures were up 1.1%.
The leading average caps off 2022 with its worst annual loss since 2008, on a three-year winning streak. The Dow fell about 8.8%, and from a 52-week high he ended the year down 10.3%. The S&P 500 is down 19.4% for the year, more than 20% below its all-time high. The tech stock Nasdaq is down 33.1% last year.
According to Greg Bassuk, CEO of AXS Investments, inflation was the biggest investor story of 2022, causing “the worst defeat for both equities and bonds in decades.” The new year begins with a cloud of fears that a “harder than desirable landing” by the Federal Reserve and its inflation-fighting move could push the economy into recession.
“2022 was marked by market crashes that blinded inflation, as both Wall Street and Main Street began the year hoping to contain inflation and keep interest rates low. “But as inflation soared, the exact opposite reality followed.”
“As prices continue to rise significantly into 2023, investors will be cautious about inflation-sensitive assets and cyclical and other stocks that tend to do well in rising price environments. would,” he added.
Investors are getting a series of data during the first trading week of the year. First up is the S&P Global Manufacturing PMI and Construction Spending scheduled for Tuesday at 9:45am and 10:00am.
Wednesday is a big day as the Jobs and Turnover Survey, better known as the JOLTS, is set to be released in the morning and the minutes of the Fed’s latest policy meeting are due to be released in the afternoon.
They’re also looking forward to Friday’s December jobs report. This is the final employment report he has to consider before the Fed’s next meeting on February 1st.