Stock futures climbed fractionally on Wednesday morning as traders eye the end of a losing year and prepare for 2023.
Futures tied to the Dow Jones Industrial Average added 48 points, trading near flat. S&P 500 and Nasdaq 100 futures rose 0.12% and 0.11%, respectively.
Tuesday saw the start of a holiday-shortened trading week. The Dow rose 37.63 points, or 0.11%, to 33,241.56. The S&P 500 fell 0.40 percent.
The Nasdaq Composite fell nearly 1.4%, driven down by an 11% drop in Tesla shares after The Wall Street Journal reported that the electric carmaker would continue a weeklong production halt at a plant in Shanghai. Tuesday marked the seventh consecutive day of losses for the stock.
It comes at the end of a turbulent year for the electric car manufacturer when owner Elon Musk carried out a chaotic purchase of Twitter. Tesla’s share value is down 69% this year.
“A year ago, Musk was a hero and there was panic buying on the upside,” Eric Jackson, founder of EMJ Capital, said on “Closing Bell: Overtime.” “Right now … it’s panic selling.”
With three trading days left in 2022, the stock market is on track for its worst year since 2008. The Nasdaq has been the worst performer of the three indexes, losing 33.8% this year as investors rotated out of growth stocks amid growing recession fears. The Dow and S&P 500 are on track to lose 8.5% and 19.7%, respectively.
Investors will look for insights into the state of the economy in manufacturing data from the Richmond Federal Reserve and pending home sales this coming Wednesday morning. Market participants will be looking for numbers that may signal that the economy is cooling, which they hope may indicate to the Fed that interest rate increases may continue to slow.