Dow futures rose on Tuesday as the ultimate trading days of 2022 kicked off, and investors deliberated over whether a Santa Claus rally will appear and lift a market weighed down by recession fears.
Dow Jones Industrial Average futures rose by 100 points, or 0.3%. Future tied to the S&P 500 advanced 0.16%, while Nasdaq 100 futures slipped 0.14%.
China-linked stocks rose premarket because the country eased Covid restrictions. Tesla slumped on news of an prolonged production pause, while Southwest shed 4% because the airline canceled 1000’s of flights.
Stocks are headed for his or her worst yearly performance since 2008 and one other down month. In December, the S&P 500 dropped roughly 5.8%, while the Dow and Nasdaq dropped about 4% and eight.5%, respectively. These are the most important monthly declines since September.
After a brutal 12 months consumed by inflation and recession fears, investors are hoping to cap off 2022 on a positive note. Friday kicked off the period for a Santa Claus rally, which is often considered the ultimate five-day trading stretch in the present 12 months, in addition to the primary two trading days in the brand new 12 months.
Markets were closed Monday for the Christmas holiday, but on this shortened trading week, investors predict either relative quiet or further volatility as a result of low trading volumes.
On the economic front, traders predict the newest data on November wholesale inventories and the October S&P/Case-Shiller home prices Tuesday before the bell.
