U.S. stock market index futures traded lower on Monday morning amid a January rally as investors braced for the busiest week of earnings season and a possible interest rate hike from the Federal Reserve. Futures tied to the Dow Jones Industrial Average slipped 206 points, or about 0.6%. S&P 500 futures fell 0.9%, and Nasdaq 100 futures dropped by 1.1%. Wall Street is coming off a winning week as the stock market’s January rally continued. The Nasdaq Composite gained 4.3% for the week, while the S&P 500 and Dow added 2.5% and 1.8%, respectively. The S&P 500 is up 6% for 2023 following a 19% loss last year and closed at a new year-to-date high on Friday. There are several tests this week for this 2023 rally. About 20% of the S&P 500 will report earnings this week, including McDonald’s and General Motors on Tuesday followed by tech giants Apple, Meta Platforms, Amazon and Alphabet later in the week. The Federal Open Market Committee meets on Tuesday and Wednesday, when the Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation. Traders have pushed stocks higher this year in part because of softer inflation reports, which they suspect could cause the Fed to soon pause its hiking campaign. “While there have been several positive developments, we think the good news is now priced, and reality is likely to return with month end and the Fed’s resolve to tame inflation,” wrote Mike Wilson, chief U.S. equity strategist for Morgan Stanley, in a note Monday. Stocks in the Asia-Pacific mostly fell on Monday as shares of Adani Group remained volatile after the conglomerate rebutted short seller firm Hindenburg’s accusations of embezzlement and fraud. Mainland Chinese markets rose on resuming trade after a week-long New Year break and are headed for a bull market — the CSI 300, which tracks the largest mainland-listed stocks, have gained about 20% from its recent lows seen at the end of October last year. The Shenzhen Component rose 1% and the Shanghai Composite rose 0.42%, bucking the trend in the wider region. Hong Kong’s Hang Seng index traded 2.37% as property and technology stocks led losses. In Japan, the Nikkei 225 gained 0.2% while the Topix was just below the flatline. South Korea’s Kospi fell 1.26% while the Kosdaq also shed 0.38%. Oil prices climbed in early Asia trade on Monday, supported by tensions in the Middle East following a drone attack in Iran and as Beijing pledged over the weekend to promote a consumption recovery which would support fuel demand. Brent crude futures rose 54 cents, or 0.6%, to $87.20 a barrel by 0115 GMT while U.S. West Texas Intermediate crude was at $80.22 a barrel, up 54 cents, or 0.7%. Gold prices inched higher on Monday as the U.S. dollar eased, while market participants globally awaited a slew of central bank meetings with the main focus on the Federal Reserve. Spot gold rose 0.3% to $1,932.84 per ounce, as of 0457 GMT. U.S. gold futures were up 0.2% at $1,932.80. The dollar index dropped 0.1%, making greenback-priced bullion more attractive for buyers holding other currencies.