Dow futures rose on Tuesday as the final days of 2022 trading began, with investors weighing whether a Santa Claus rally will emerge and lift a market weighed down by recession fears.
Dow Jones Industrial Average futures rose 100 points, or 0.3%. The S&P 500-linked future advanced 0.16%, while Nasdaq 100 futures fell 0.14%.
China-linked stocks rose pre-market as the country eased Covid restrictions. Tesla fell on news of an extended production halt, while Southwest fell 4% as the airline canceled thousands of flights.
The stock is headed for its worst annual performance since 2008 and another month down. 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 biggest monthly declines since September.
After a brutal year consumed by inflation and recession fears, investors are hoping to end 2022 on a positive note. Friday began the period for a Santa rally, which is typically considered the last five-day trading stretch of the current year, as well as the first two trading days of the new year.
Markets were closed on Monday for the Christmas holiday, but in this shortened trading week, investors expect relative calm or more volatility due to low trading volumes.
On the economic front, traders await the latest data on November wholesale inventories and October home prices from S&P/Case-Shiller on Tuesday before the bell.