Stocks are rising as investors await inflation data, and the Nasdaq is attempting four straight days of gains

Stocks rose on Wednesday as Wall Street looked to build on a positive start to 2023.

The Dow Jones Industrial Average advanced 81 points, or 0.2%. The S&P 500 rose 0.5%, while the Nasdaq Composite added 0.9%.

The moves come after the Nasdaq index settled The first three-day winning streak since November Tuesday. Investors picked battered technology stocks amid growing hope of a change of course in the Fed’s rate hike campaign. Wednesday’s positive close will mark its first four-day rally since September.

The rally marks a shift from 2022, when the Composite fell 33.1% as fears of a possible recession prompted investors to prioritize value over growing stocks.

“As we near the end of the Fed’s rate hike campaign, technology stocks should rally,” said Gina Bolvin, president of Bolvin Wealth Management Group. “Let’s face it: They were put together last year, so there are investors out there who want to get some deals.”

2023 has brought a comfortable rally so far in riskier areas of the market, such as technology, but many investors remain cautious ahead of earnings season and more expected rate hikes from the Federal Reserve. All three averages are positive for the young year.

Investors are preparing for Thursday’s Consumer Price Index, which economists polled by Dow Jones expect prices to show a modest 0.1% in December from the previous month. Forecasts still call for an increase of 6.5% over the previous year. Excluding food and energy prices, economists expect the CPI for December to be 0.3% higher than the previous month and 5.7% higher than a year ago.

Quarterly results for the major banks will follow on Friday, kicking off a new earnings season.