Stock futures climbed fractionally Wednesday morning as traders look to the tip of a losing 12 months and prepare for 2023.
Futures tied to the Dow Jones Industrial Average added 91 points, or 0.27%. S&P 500 and Nasdaq 100 futures were up 0.25% and 0.2%, respectively.
Investors will search for insights into the state of the economy in manufacturing data from the Richmond Federal Reserve and pending home sales coming Wednesday morning. Market participants will likely be searching for numbers that may signal the economy is cooling, which they hope could illustrate to the Fed that rate of interest hikes can proceed slowing.
Tuesday kicked off the beginning of a holiday-shortened trading week. The Dow rose 37.63 points, or 0.11%, to shut at 33,241.56. The S&P 500 fell 0.40%.
The Nasdaq Composite shed nearly 1.4%, driven down by an 11% drop in Tesla stock after The Wall Street Journal reported that the electrical vehicle maker would proceed a weeklong production pause at a Shanghai facility. Tuesday marked the seventh straight day of losses for the stock.
It comes at the tip of a tumultuous 12 months for the electric-vehicle maker as owner Elon Musk executed a chaotic purchase of Twitter. Tesla’s share value is down 69% this 12 months.
“A 12 months ago, Musk was a hero and there was panic buying to the upside,” said Eric Jackson, founding father of EMJ Capital, on “Closing Bell: Extra time.” “Straight away … it’s panic selling.”
With three trading days left in 2022, the stock market is on target for its worst 12 months since 2008. The Nasdaq has performed the worst of the three indexes, losing 33.8% this 12 months as investors rotated out of growth stocks amid rising recession fears. The Dow and S&P 500 are on target to lose 8.5% and 19.7%, respectively.
