Stock futures rise heading into the final trading week of 2022

Traders work on the floor of the New York Stock Exchange (NYSE), November 29, 2022.

Brendan McDermid | Reuters

U.S. stock futures rose late Monday as investors head into the final trading days of 2022, deliberating whether a Santa Claus rally will emerge and lift a market that has been weighed down by recession fears.

Dow Jones Industrial Average futures rose 157 points, or 0.47%. S&P 500 and Nasdaq 100 futures rose 0.61% and 0.73% respectively.

In Friday’s regular session, the Dow Jones Industrial Average closed up 176 points, or 0.5%. The S&P 500 rose 0.6% and the Nasdaq Composite added 0.2%.

Friday marked the start of the period for a Santa Claus rally, which is generally considered the last five-day trading period of the current year, as well as the first two trading days of the new year. The markets were closed on Monday for the Christmas holidays.

Due to low trading volumes, investors expect relative calm or increased volatility in the holiday-shortened week. The markets are one month and one year closure defined by an upsurge in recession fears.

In December, the S&P 500 fell about 5.8%, while the Dow Jones and Nasdaq fell about 4% and 8.5%, respectively. These are the largest monthly declines since September. The large averages are heading for their worst annual performance since 2008.

“[The] The question of what kind of recession remains unanswered,” Quincy Krosby, chief global strategist at LPL Financial, wrote on Friday. to finally fight persistent inflation.”

On the economic front, traders await the latest November wholesale inventory and October S&P/Case-Shiller home price data on Tuesday before the bell.

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