US stock futures rose on Tuesday as the final trading days of 2022 began, with investors hoping for a Santa Claus rally to lift a market weighed down by recession fears.
Futures on the Dow Jones Industrial Average increased by 200 points or 0.6%. Futures on the S&P 500 and Nasdaq 100 rose 0.56% and 0.37%, respectively.
During the Friday regular session, the Dow Jones Average closed 176 points higher, or 0.53%. The S&P 500 gained 0.6%, while the Nasdaq Composite gained 0.2%.
Markets Were Closed For The Christmas Holiday On Monday
Because of low trading volumes, investors anticipate relative calm or increased volatility during the holiday-shortened week. Markets are coming to the end of a month and year marked by a surge in recession fears.
The S&P 500 fell about 5.8% in December, while the Dow and Nasdaq fell about 4% and 8.5%, respectively. These are the most significant monthly declines since September. The major averages are on track to have their worst year since 2008.
Tesla stock fell more than 5%. The production cut extends a previously planned production pause. It comes as the company deals with a resurgence of Covid cases among its employees.
On Tuesday, European stocks rose as positive sentiment persisted in the final trading days of 2022. Germany’s DAX rose by about 0.8% in early trade, France’s CAC 40 rose by about 0.9%, and Italy’s FTSE MIB rose by about 0.7%. Tuesday is a public holiday in the United Kingdom, so the FTSE index is closed.
China officially announced overnight that it would end quarantine for incoming travelers on January 8 — signaling the end of China’s nearly three-year-long zero-Covid policy. This gave stocks in Europe a boost from their counterparts in the Asia-Pacific.