U.S. stock futures dipped Tuesday as investors returned from the long weekend and eyed further corporate earnings updates.
How are stock index futures trading
S&P 500 futures ES00, -0.32% dipped 12 points, or 0.3%, to 4006
Dow Jones Industrial Average futures YM00, -0.24% fell 76 points, or 0.2%, to 34340
Nasdaq 100 futures NQ00, -0.46% eased 48 points, or 0.4%, to 11561
On Friday, the Dow Jones Industrial Average DJIA, +0.33% rose 113 points, or 0.33%, to 34303, the S&P 500 SPX, +0.40% increased 16 points, or 0.4%, to 3999, and the Nasdaq Composite COMP, +0.71% gained 78 points, or 0.71%, to 11079. Markets were shut on Monday to commemorate the Martin Luther King Jr. holiday.
What’s driving markets
The positive start to the year showed signs of fading as U.S. investors returned from a long weekend.
The S&P 500 rose 4.2% in the first two weeks of 2023, with trader sentiment underpinned by hopes that easing inflation will reduce the need for the Federal Reserve to increase borrowing costs by much more.
“Markets have started off the year strong…While this can be an early sign of a sustained new uptrend, this type of move over the first two weeks after a bad year is not atypical,” said Jonathan Krinsky, chief trecnical strategist at BTIG.
“The third week of the year following -10% years, however, is when things get more difficult. The average week 3 following -10% years is -0.63%, and when the first two weeks are positive like they are now, the average week 3 return is -1.03% and down 7 of 10 times,” Krinsky wrote in a note to clients.