Traders gather on the floor of the New York Stock Exchange (NYSE) on Tuesday, January 3, 2023, in New York.
Michael Nagle | Bloomberg | Getty Images
Stock futures fell on Wednesday, with Wall Street on track to make up for losses from the previous session.
futures tied to Dow Jones Industrial Average It fell 172 points (0.5%). S&P500 futures and Nasdaq 100 futures They fell by 0.5% and 0.6%, respectively.
Wall Street rallied as the 10-year Treasury yield rose above 4% after Federal Reserve President Christopher Waller warned that monetary easing may be slower than expected. We are emerging from defeat.
European Central Bank President Christine Lagarde said on Wednesday she expected the ECB to cut interest rates before the end of the year, but reiterated that policy will depend on data.
Traders are currently pricing in about a 65% chance that the Federal Reserve will start cutting interest rates in March, as hopes for a policy shift increase, according to CME Group's FedWatch tool.
Traders also weighed in on weaker-than-expected Chinese GDP data released overnight.
Fourth-quarter earnings gained momentum this week, potentially marking the next big test for the market that could shape how things go into 2024. Investors are already closely monitoring the financial results of major banks. goldman sachs, morgan stanley and american bank.Earnings season continues on Wednesday with the following results announced charles schwab, US Bancorp and Prologis.
Jeffrey Buchbinder, chief equity strategist at LPL Financial, said, “While we may not see the same flashy headlines like last quarter's “earnings downturn surrounding earnings downturn'' this quarter, it is important to note that this quarter will set the tone for 2024. “It's becoming even more important.” “While 2023 was a year in which improving valuations brought significant benefits, this year earnings will be under significant strain.”
Wall Street is awaiting December retail sales figures to be released on Wednesday. The findings could provide further insight into consumer health or contribute to growth concerns if spending eases. Economists polled by Dow Jones expect retail sales to rise 0.4% in December, up slightly from 0.3% in November.
Wednesday will also include remarks from New York Fed President and CEO John Williams, as well as the Fed's Beige Book for November and business inventories.