The new year began with a bang on Tuesday as buyers pushed the Nasdaq, the S&P 500, and the Russell 2000 to new all-time highs. Investors are more reserved this morning, however, evidenced by the S&P 500 futures, which are drifting just one point above fair value.
Traders don't have much to chew on in terms of headlines this morning, but they will receive several notable items following the opening bell. The ISM Manufacturing Index for December (Briefing.com consensus 58.0) and the November Construction Spending Report (Briefing.com consensus +0.7%) will both be released at 10:00 AM ET, while the minutes from the December FOMC meeting will cross the wires at 2:00 PM ET.
The Fed raised the fed funds target range by 25 basis points to 1.25%-1.50% at the December FOMC meeting, as expected, and left its forecast for rate hikes unchanged, predicting three rate increases in 2018 and two in 2019. The market is hopeful that the minutes will provide further insight as to the timing of said rate hikes, especially considering that inflation still remains a ways below the Fed's year-over-year target of 2.0%.
In addition to the aforementioned reports, auto and truck sales for December will be released throughout the day.
U.S. Treasuries have recouped some of Tuesday's losses this morning, sending yields below yesterday's closing levels; the benchmark 10-yr yield is hovering at 2.45% after finishing Tuesday's session at 2.47%. Meanwhile, the 2-yr yield has held up relatively well and currently trades unchanged at 1.92%.
West Texas Intermediate crude futures are up 0.7% at $60.80 per barrel, which marks a fresh 31-month high. The commodity has benefited from ongoing anti-government protests in Iran, although the unrest hasn't had any reported impact on oil production thus far.
Elsewhere, the Euro Stoxx 50 (+0.3%) is on track to break a six-session losing streak as the euro trades 0.2% lower against the U.S. dollar at 1.2031. Equity indices in the Asia-Pacific region finished Wednesday mostly higher, but Japan's Nikkei remained closed for a holiday.