Stock futures rise as Wall Street tries to recover from Tuesday’s

Stock futures traded higher Wednesday as Wall Street tries to recover its footing after a tough first session of the year.

Futures tied to the Dow Jones Industrial Average rose 111 points, or 0.3%. S&P 500 and Nasdaq-100 futures climbed 0.5% and 0.7%, respectively.

Sentiment was boosted in part by encouraging inflation data from Europe, including a greater-than-expected decline in the French consumer price index and a drop in German import prices.

U.S. stocks started 2023 on a downbeat note Tuesday as rising rate concerns, high inflation and recessionary fears crushed hopes that Wall Street could kick off the new year on a positive note. The S&P 500 and Nasdaq Composite lost 0.4% and 0.8%, respectively, while the Dow closed just below breakeven. The major indexes were also pressured by steep declines in Apple and Tesla shares.

“U.S. stocks were unable to hold onto earlier gains as restrictive policy and recession fears remained front and center for investors,” wrote Oanda’s senior market analyst Ed Moya in a note to clients Tuesday. “Discount buying triggered another bear market rebound that didn’t last long at all.”

Investors will gain more insight into what Fed members are thinking on Wednesday afternoon as minutes from the central bank’s latest policy meeting are released. Earlier in the day, the Job Openings and Labor Turnover Survey, or JOLTS, and ISM manufacturing data are due out.

Friday’s December jobs report also will be closely watched as it is the last read on the labor market before the Fed meeting in February.

“It is too early to start betting on a Fed pivot this year and that should make this difficult environment for stocks,” Moya said.