The S&P 500 opened flat Tuesday as the final trading days of 2022 kicked off. Investors deliberated over whether a Santa Claus rally will appear and lift a market weighed down by recession fears.
The Dow Jones Industrial Average last traded 20 points higher, or 0.05%. The S&P 500 traded flat, while the Nasdaq Composite shed 0.3%.
China-linked stocks rose premarket as the country eased Covid restrictions. Tesla slumped on news of an extended production pause, while Southwest shed 4% as the airline canceled thousands of flights.
Stocks are headed for their worst yearly performance since 2008 and another down month. In December, the S&P 500 dropped roughly 5.8%, while the Dow and Nasdaq dropped about 4% and 8.5%, respectively. These are the biggest monthly declines since September.
After a brutal year consumed by inflation and recession fears, investors are hoping to cap off 2022 on a positive note. Friday kicked off the period for a Santa Claus rally, which is typically considered the final five-day trading stretch in the current year, as well as the first two trading days in the new year.
Markets were closed Monday for the Christmas holiday, but in this shortened trading week, investors are expecting either relative quiet or further volatility due to low trading volumes.