Traders work the floor of the New York Stock Exchange (NYSE) on November 29, 2022.
Brendan McDermid | Reuters
U.S. stock futures rose Tuesday morning as investors head into the final trading days of 2022 and ponder whether a Santa Claus rally will materialize and lift a market weighed down by recession fears.
Dow Jones Industrial Average futures were up 154 points, or 0.46%. S&P 500 and Nasdaq 100 futures were up 0.63% and 0.75%, respectively.
During Friday’s regular session, the Dow Jones Industrial Average ended up 176 points, or 0.5%. The S&P 500 rose 0.6% and the Nasdaq Composite gained 0.2%.
Friday marked the start of the period for a Santa Claus rally, which is usually seen as the last five-day trading stretch of the current year and the first two trading days of the new year. The markets were closed on Monday for the Christmas holidays.
Due to low trading volume, investors expect either relative calm or further volatility during the holiday-shortened week. Markets close a month and a year marked by rising recession fears.
In December, the S&P 500 fell about 5.8%, while the Dow and Nasdaq fell about 4% and 8.5%, respectively. These are the largest monthly declines since September. Key averages are heading for their worst annual performance since 2008.
“[The] “The question of the nature of the recession remains unanswered,” wrote Quincy Krosby, chief global strategist at LPL Financial, on Friday. “And for that, the answer depends primarily on how much more the Fed needs to hike rates to finally tackle stubborn inflation.”
On the economic front, traders are awaiting the latest data on November wholesale inventories and October house prices from S&P/Case-Shiller Tuesday before the bell.
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