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 trading on Sunday after The major averages made their first major rally in the new trading year.
Futures linked to the Dow Jones Industrial Average gained 37 points, or 0.11%, while S&P 500 and Nasdaq 100 futures gained 0.16% and 0.25%, respectively.
The overnight moves followed the market’s first major rally on Friday in 2023. The Dow Jones rose 700 points, or 2.13%, while the S&P 500 and Nasdaq Composite added 2.28% and 2.56%, respectively, after the December jobs report indicated that Inflation may decline.
Nonfarm payrolls came in slightly above expectations, but wages rose at a slower pace than expected. This, and data showing a contraction in the services sector, reinforced hopes that the central bank’s interest rate hike is achieving its goal.
Friday’s payroll report and news of layoffs across industries suggest the job market is softening, but the economy may have more work to do, according to Rick Reeder, chief investment officer of global fixed income at BlackRock.
“We believe the moderation in business conditions will continue, as parts of today’s report show, but we believe there is still a hold on labor demand in services, which will continue for some time,” he said in a note on Friday.
All major averages ended Friday’s session with weekly gains, as the Dow Jones and Standard & Poor’s indices recorded their best week since November. The Dow Jones and Standard & Poor’s capped their best day since November 30, while the Nasdaq ended Friday with its best session since December 29.
Monday kicks off a big week for economic data. The December CPI report is due on Thursday, followed by the major banks’ earnings report on Friday. In the near term, the New York Fed’s survey of consumer expectations is due out alongside consumer credit data on Monday. Wall Street will also hear commentary from Atlanta Fed President Rafael Bostick.
“Web maven. Infuriatingly humble beer geek. Bacon fanatic. Typical creator. Music expert.”