LATEST MARKET NEWS: Southwest stocks sink, Apple faces lawsuit over biases, recession-proof jobs and major tax changes for 2023.

US stock futures rose Tuesday morning as investors hope a year-end rally will lift a market weighed down by recession fears.

Markets in the US and Europe were closed Monday for holidays.

Indexes started lower on Friday after data from the US Department of Commerce showed that prices for services continued to rise faster than had been hoped last month. But stocks took positives after the morning release of the University of Michigan consumer survey painted households as optimistic about the economy.

Stock markets were choppy with the S&P gaining 22.43, or 0.6%, to 3844.82, while the technology-focused Nasdaq Composite rose 21.74, or 0.2%, to 10497.86. The Dow Jones Industrial Average rose 176.44, or 0.5%, to end at 33203.93.

Still, a three-week streak of losses for the S&P and Nasdaq has led markets to end 2022 with a bad month. The S&P lost 5.8% in December, while the Nasdaq lost 8.5% and the Dow Industrials lost 4%.

“Stocks are left with a pretty tough backdrop, and also one that probably won’t result in much multifold expansion,” said Ed Perks, chief investment officer at Franklin Templeton’s Franklin Income Investors.

The Perks team has invested about 60% of its flagship portfolio in bonds, a reversal from a 70% allocation to equities starting in 2022. Given how closely corporate earnings are tied to consumer behavior, traders are sensitive to any evidence of how well U.S. portfolios are navigating through inflation and slowing growth.

Jobless claims remain historically low, but layoffs are on the rise. Friday’s data indicated that consumer spending growth slowed in November from October, so this morning’s strong Michigan survey came as a small relief.

“What you’re willing to pay at the pump, what you’re willing to pay at the grocery store, that’s what the markets and the Fed will lead next year,” said Matthew Bartolini, head of SPDR Americas Research at State Street Global. advisors.

Bonds fell on Friday as traders suspected signs of continued inflation increased the likelihood that the Fed will keep interest rates high for longer in the future. Friday’s data on personal consumption spending — the Fed’s favorite inflation measure — showed that prices for services rose 0.4% in November, a tough year-on-year pace. Continued increases in services prices have spooked investors in recent months.

Meanwhile, Asian stocks rose on Tuesday after China announced it would ease more of its pandemic restrictions despite widespread outbreaks of COVID-19 straining its medical systems and disrupting business.

The Shanghai Composite index rose 0.8% to 3,089.39. Markets in Hong Kong were closed for a holiday, as were those in Australia. The Nikkei 225 in Tokyo gained 0.2% to 26,447.87 and the Kospi in Seoul gained 0.7% to 2,332.79. In Bangkok, the SET index rose 0.8%, while the Sensex rose 1.2% in Mumbai.

China’s National Health Commission said on Monday that passengers arriving from abroad would no longer be quarantined from January 8. They must still have a negative virus test within 48 hours of their departure and wear masks on their flights.