Stock futures were in the red in the early hours of Thursday, as traders settled back after a sharp rally on Wednesday.
Futures on the Dow Jones Industrial Average (DJIA) lost 0.16%, while those on the S&P 500 (SPX) slipped 0.12%, as of 7 a.m. EST, Thursday. Meanwhile, the Nasdaq 100 (NDX) futures declined 0.12%.
Micron Technology (NASDAQ:MU) fell 3% in the pre-market trading Thursday after posting dismal quarterly results.
The market spiked yesterday, led by solid gains in the energy sector and positive consumer sentiment data for December. At the end of the session, the S&P 500, the Dow, and the Nasdaq 100 clocked gains of 1.49%, 1.6%, and 1.48%, respectively.
With only a little more than a week remaining in 2022, a Santa Claus rally that typically graces the market around this time every year is less likely to happen this year. There are several possible reasons behind this. The Federal Reserve Chairman, Jerome Powell, remains hawkish in his stance, saying that there is still a long way to go before reaching the desirable inflation levels. The job market has not yet slowed down as much as the Fed desires, and this is a significant obstacle in the path to recovery.
The rest of the year is largely expected to be quiet, with the Christmas holiday round the corner. The only major economic data that is expected this week and next is the weekly initial jobless claims, which is one of the data that the Fed keeps a close watch on to understand the weekly trends in the job market. Last week’s jobless claims data will be out later on Thursday.
The market is expected to remain volatile, going into 2023, with short-term spikes here and there but nothing major is expected to move the market until the new year begins.
Stocks are on track to finish the month lower than they began. So far in December, the Dow has lost 3.51%, the S&P 500 4.94%, and Nasdaq Composite, 6.62%. For the year, all three major averages are expected to post their worst year since 2008.
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