On Tuesday, stock futures decreased as investors attempted to continue their early 2023 progress while evaluating the latest financial results. Futures linked to the Dow Jones Industrial Average decreased by 105 points or 0.3%.
S&P 500 futures fell by 0.2%, and Nasdaq-100 futures decreased by 0.4%. Goldman Sachs reported lower-than-expected profits for the fourth quarter, causing their stock to drop more than 2% in premarket trading. This was due to declines in investment banking and asset management revenues.
In contrast, Morgan Stanley’s numbers were better than expected, partly due to record wealth management revenue. These results follow mixed quarterly results from other major banks such as JPMorgan and Citigroup.
The street has had two consecutive positive weeks to start the new year. The Nasdaq Composite has gone up 5.9%, as investors bought technology shares that had decreased in value, due to increasing hopes of an improving landscape for growth stocks.
US stock market movers on 17th January
The S&P 500 and Dow have increased 4.2% and 3.5%, respectively, since the start of the year. These gains are a result of the first release of inflation-related data that investors interpreted as indicating a contracting economy, raising hopes that the Federal Reserve will slow interest rate hikes once again.
One major contributor to the decline in stock futures was the release of Goldman Sachs’ fourth-quarter results, which showed a smaller-than-expected profit. This led to a decrease of more than 2% in the stock’s value in premarket trading.
The bank’s results were negatively impacted by declines in both investment banking and asset management revenues. On the other hand, rival bank Morgan Stanley’s numbers were better than expected, in part due to record-breaking wealth management revenue.
These results come after other major banks such as JPMorgan and Citigroup reported mixed results for the quarter. Overall, Wall Street has had two consecutive positive weeks to start the new year. The Nasdaq Composite has seen the strongest gains, rising by 5.9%.
This can be attributed to investors purchasing technology shares that had decreased in value, due to increasing optimism about the potential for growth in this sector. The S&P 500 and Dow have also seen gains, increasing by 4.2% and 3.5% respectively, since the start of the year.
The gains in the stock market can be attributed to the first release of inflation-related data, which investors interpreted as indicating a contracting economy. This has led to hopes that the Federal Reserve will slow interest rate hikes in the future.
Specifically, last week’s release of the consumer price index for December showed that prices had cooled by 0.1% from the prior month, but was still 6.5% higher than the same month a year ago.