Stock futures are flat on Friday morning

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

Brendan McDiarmid | Reuters

Stock futures rose in early morning trading on Friday.

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 the December sell-off resumed and hopes of a Santa Claus rally faded. The Dow fell 348.99 points, or 1.05%, but finished well at a low of 803 points. The S&P 500 and Nasdaq Composite dove 1.45% and 2.18%, respectively.

Tech stocks were among the leading losers, with semiconductor stocks pulling back on demand concerns from Micron Technology. Tesla also lost nearly 9% on fears of dwindling demand. All major S&P 500 sectors also ended lower, which led to the downside via consumer appreciation.

The moves came as fears of a recession returned, dashing some investors’ hope for a year-end rally. Investors are worried that excessive tightening by central banks around the world could force the economy into a contraction.

“From a broader market and economic perspective, next year is no different,” Dan Greenhouse, chief strategist at Solus Alternative Asset Management, said on CNBC’s “Closing Bell: Overtime” Thursday, noting that questions will linger about the extent to which The Fed will raise it. “The trend is still a trend that is still in place.”

As 2022 draws to a close, stocks are also preparing to end three years of winning streak They post their worst annual performance since 2008. For December, all major averages are on track for two straight months of gains, with the Dow down 4.5%. The S&P and Nasdaq are down 6.3% and about 8.7%, respectively.

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Investors await more economic data due on Friday, including the personal consumption expenditures report for November – the Fed’s preferred measure of inflation – and personal income. New Home Sales and Consumer Confidence for December are also scheduled to be released.

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