Stock futures rose slightly on Wednesday morning as traders look to the end of a losing year and prepare for 2023.
Futures linked to the Dow Jones Industrial Average added 48 points, trading almost flat. S&P 500 and Nasdaq 100 futures rose 0.12% and 0.11% respectively.
Tuesday kicked off a holiday-shortened trading week. The Dow gained 37.63 points, or 0.11%, to close at 33,241.56. The S&P 500 fell 0.40%.
The Nasdaq Composite lost nearly 1.4%, dragged down by an 11% drop in Tesla stock after the Wall Street Journal reported the electric vehicle maker would continue a week-long production hiatus at a factory from Shanghai. Tuesday marked the seventh straight day of title losses.
It comes at the end of a tumultuous year for the electric vehicle maker as owner Elon Musk executed a chaotic Twitter buy. The value of Tesla stock is down 69% this year.
“A year ago, Musk was a hero and there was panic buying on the rise,” Eric Jackson, founder of EMJ Capital, said on “Closing Bell: Overtime.” “Right now…it’s panic selling.”
With three trading days remaining in 2022, the stock market is on track for its worst year since 2008. The Nasdaq performed the worst of the three indexes, losing 33.8% this year as investors dumped growth stocks amid growing recession fears. The Dow Jones and S&P 500 are on track to lose 8.5% and 19.7% respectively.
Investors will look for information on the state of the economy in manufacturing data from the Richmond Federal Reserve and pending home sales ahead of Wednesday morning. Market participants will be looking for numbers that may signal that the economy is cooling, which they hope could signal to the Fed that interest rate hikes may continue to slow.
