Dow futures rose on Tuesday as the final sessions of 2022 kicked off, with investors hoping a Santa Claus rally would lift markets weighed down by recession fears.
Dow Jones Industrial Average futures were up 100 points, or 0.3%. Futures tied to the S&P 500 rose 0.16%, while Nasdaq 100 futures fell 0.14%.
China-related stocks rose pre-market as the country eased Covid restrictions. Tesla slumped on news of an extended shutdown, while Southwest Airlines fell 4% as it canceled thousands of flights.
After a brutal year and month for the stock market, with recession fears draining, investors are hoping to end 2022 on a positive note.
Friday kicked off the Santa Claus rally, often considered the last five trading days of the year and the first two trading days of the new year.
During Friday’s regular session, the Dow Jones Industrial Average closed up 176 points, or 0.5%. The S&P 500 rose 0.6 percent and the Nasdaq Composite rose 0.2 percent.
Markets were closed on Monday for the Christmas holiday. Investors are expecting either relative calm or further volatility amid low trading volumes in this shortened trading week.
Stocks are headed for their worst performance since 2008 and another month of losses. In December, the S&P 500 lost about 5.8%, while the Dow and Nasdaq lost about 4% and 8.5%, respectively. It was the largest monthly drop since September.
On the economic front, traders looked ahead to the latest data on wholesale inventories for November and S&P/Case-Shiller home prices for October before markets opened on Tuesday.