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Stock futures inch lower as Wall Street awaits final trading day of 2022

Stock futures fell in pre-market trading on Friday as investors prepare for the final trading day of the worst year for stocks since 2008.

Futures tracking the Dow Jones Industrial Average fell 82 points, or 0.25%. S&P 500 and Nasdaq 100 futures traded 0.3% and 0.33% lower respectively.

The overnight move followed Thursday’s rally, with the Nasdaq Composite and S&P 500 up about 2.6% and about 1.8% respectively. The Dow Jones Industrial Average rose 345 points, or 1.05%.

The Dow and S&P are slightly higher this week and the Nasdaq is expecting a small loss. All major averages were lower for him in December, poised for a second straight win.

Friday marks the last day of trading in what has been a rough year for the stock. A volatile bear market, persistent inflation and aggressive rate hikes by the Federal Reserve have hit growth and technology stocks. These factors also weighed on investor sentiment.

All three major averages are headed for their worst year since 2008 and are set to snap a three-year winning streak. The Dow fell 8.58% in 2022, while the S&P and tech-heavy Nasdaq fell 19.24% and 33.03%, respectively.

Despite yearly losses, the Dow is on pace to rise 15.65% quarter-on-quarter and is poised to fall for the third straight quarter. It’s also heading for its best quarter since the second quarter of 2020. The S&P is set to rise his 7.35%, breaking three consecutive quarters of losses. The Nasdaq fell 0.92%, his fourth straight quarterly negative for the first time since 2001.

All major S&P sectors rose on Thursday, led by telecom services. Consumer discretionary services and telecom services are the only sectors headed for losses this quarter. Energy is the only sector on the pace of annual growth after a nearly 58% surge.

Communications services stocks in the S&P 500 are down more than 40% year-to-date, and consumer discretionary stocks are down 37.4%, while energy, the only positive sector in the Large Cap Index, surged nearly 58%.

As the calendar year draws to a close, some investors believe the pain isn’t over yet and expect the bear market to continue until a recession hits or the Fed turns around. Others predict that the stock will reach new lows. 50 Park Investments CEO Adam Sarhan said Thursday’s move was likely due to short cover, value investing and momentum as his traders joined the rally.

“Nothing fundamentally changed,” he said. “There has been a significant drop. The market is on the downside and it’s perfectly normal to see a bounce here.”

On the economic side, Chicago PMI data for December is due out on Friday. Next week will see a slight slate of economic data highlighted by the nonfarm payrolls report set for 6 January.

— Gabriel Cortez contributed to the report

Correction: The charts in this article have been updated to reflect the correct year-to-date decline of the Dow Jones Industrial Average.