Stock futures are flat on Friday morning

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on December 7, 2022.

Brendan McDermid | Reuters

Equity futures rose slightly on Friday morning.

Futures contracts linked to the Dow Jones Industrial Average gained 50 points, or 0.15%. S&P 500 and Nasdaq 100 futures rose 0.12% and 0.03% respectively.

The overnight moves followed another bearish session for the markets as December selling resumed and hopes of a Santa Claus rally faded. The Dow fell 348.99 points, or 1.05%, but finished well off its low of 803 points. The S&P 500 and the Nasdaq Composite plunged 1.45% and 2.18% respectively.

Tech stocks were among the leaders in losses, with shares of semiconductor stocks tumbling on demand concerns for Micron Technology. Tesla also lost nearly 9% on fears of a drop in demand. All major sectors of the S&P 500 also ended lower, dragged down by consumer discretionary.

The moves came as fears of a recession resurfaced, dashing some investors’ hopes of a year-end rally. Investors fear that excessive tightening by central banks around the world could lead to a slowing economy.

“From a broader market and economic perspective, nothing will be different next year,” Dan Greenhaus, chief strategist at Solus Alternative Asset Management, said Thursday on “Closing Bell. :Overtime” from CNBC, noting that questions will linger about the extent of the Fed’s hike. “The trend is always the trend that stays in place.”

With the end of 2022 approaching, stocks are also about to end three years of gains and post their worst annual performance since 2008. For December, all major averages are on course for two straight months of victories, with the Dow down 4.5%. The S&P and Nasdaq fell 6.3% and about 8.7% respectively.

Investors expect more economic data to come out on Friday, including November’s personal consumption expenditure report — the Federal Reserve’s preferred measure of inflation — and personal income. New home sales and the consumer confidence index for December should also be released.

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