In Friday’s early morning trading, stock futures edged up.
The Dow Jones Industrial Average futures rose 50 points or 0.15%. Futures for the S&P 500 and Nasdaq 100 were each up 0.12% and 0.03%.
As December’s selloff resumed and expectations for a Santa Claus rally faded, markets had another down session, followed by the overnight movements. The Dow dropped by 348.99 points or 1.05%, but it still ended well above its low of 803 points. The Nasdaq Composite fell 2.18%, and the S&P 500 fell 1.45%, respectively.
Losers included tech stocks, with semiconductor stock shares falling on worries about demand from Micron Technology. Tesla also fell by close to 9% on concerns about declining demand. The S&P 500’s major sectors finished lower, with consumer discretionary as the main culprit.
These actions occurred as recession worries returned, dashed some investors’ expectations for a year-end rally. Investors are concerned that excessive tightening by central banks could push the economy into a recession.
Stocks are also prepared to end three years of gains and record their worst yearly performance since 2008 as 2022 draws close. With the Dow down 4.5% in December, all major averages are on track to end two months of gains. S&P and Nasdaq both experienced declines of about 8.7% and 6.3%, respectively.
The Federal Reserve’s preferred inflation measure, the personal consumption expenditure report for November, and personal income are among the additional economic data that investors are awaiting to be released on Friday. There will also be reports on new home sales and the consumer sentiment index for December.
The BEA will also release data on personal income. In comparison to October’s 0.7% gain, economists forecast a 0.3% increase in November.
The release of the November data is critical because it shows how the Fed’s six prior interest rate increases will affect the economy in 2022 as the central bank works to slow the pace of growth. On December 14, policymakers announced their seventh rate increase, a 50 basis point increase.
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