Stock futures fell on Monday morning amid the January session as investors braced for a busy week of earnings and interest rate hikes from the Federal Reserve.
Futures tied to the Dow Jones Industrial Average fell 237 points, or about 0.7%. S&P 500 futures fell 1%, and Nasdaq 100 futures fell 1.4%.
Wall Street is coming off a successful week as the January stock market rally continues. The Nasdaq Composite gained 4.3% for the week, while the S&P 500 and Dow added 2.5% and 1.8%, respectively. The S&P 500 rose 6% in 2023 following a 19% loss last year and closed out the new year through Friday.
There are several tests this week for the 2023 meeting. About 20% of the S&P 500 will report earnings this week, including McDonald’s and General Motors on Tuesday followed by tech giants Apple, Meta Platforms, Amazon and Alphabet at the end of the week.
The Federal Open Market Committee meets on Tuesday and Wednesday, when the Fed is expected to raise rates by one percentage point. Investors will be looking for information on how much the central bank will raise in the fight against inflation. Investors have pushed stocks higher this year in part because of the dovish reports, which they suspect will prompt the Fed to end its hiking campaign sooner rather than later.
“Despite a number of positive developments, we think the good news is that prices are now bearish, and that reality will come back at the end of the month and the Fed’s determination to tackle inflation,” wrote Mike Wilson, chief US analyst at Morgan Stanley. find out on Monday.
