Traders work on the floor of the New York Stock Exchange (NYSE) on December 7, 2022 in New York City.
Brendan McDermid | Portal
Stock futures were up in early morning trade on Friday.
Futures linked to the Dow Jones Industrial Average gained 50 points, or 0.15%. S&P 500 and Nasdaq 100 futures were up 0.12% and 0.03%, respectively.
Overnight moves followed another bearish session for markets as the December sell-off resumed and hopes of a Santa Claus rally faded. The Dow plunged 348.99 points, or 1.05%, but finished well short of its low of 803 points. The S&P 500 and Nasdaq Composite fell 1.45% and 2.18%, respectively.
Tech stocks were among the loss leaders, with semiconductor stock shares slumping on demand concerns from Micron Technology. Tesla also lost nearly 9% on fears of falling demand. All major sectors of the S&P 500 also ended lower, leading to lower movement in consumer discretionary.
The moves came as fears of a recession reignited and dashed some investors’ hopes of a year-end rally. Investors fear that overly tightening by central banks around the world could push the economy into a downturn.
“From a broader market and economic perspective, next year is no different,” Dan Greenhaus, chief strategist at Solus Alternative Asset Management, said on CNBC’s “Closing Bell: Overtime” on Thursday, noting that questions will remain about just how far the Fed will rise. “The trend is still the trend that stays in place.”
With the end of 2022 just around the corner, stocks are also poised to end three years of gains and post their worst annual performance since 2008. For December, all the major moving averages are on track for two consecutive months of gains, with the Dow down 4.5%. The S&P and Nasdaq are down 6.3% and about 8.7%, respectively.
Investors are awaiting more economic data due Friday, including the November Personal Spending report — the Federal Reserve’s preferred measure of inflation — and personal income. The release of new home sales and the December consumer sentiment index is also scheduled.