Stock futures opened the week higher

Stock futures edged higher on Monday after the major averages posted a second straight week of losses for the first time since September. Investors also struggled to avoid fears of a recession.

Futures tied to the Dow Jones Industrial Average rose 79 points, or 0.23%, while S&P 500 and Nasdaq 100 futures advanced 0.34% and 0.44%, respectively.

Moves for stocks follow another down week Federal Reserve raised short-term interest rates by 50 basis points and indicated higher long-haul rates. Recession fears grew as the central bank raised its forecast for future hikes above previous expectations, saying it now expects rates to rise to 5.1%.

Stocks look set to deliver a disappointing monthly performance in December. The Dow fell 281.76 points, or 0.85%, on Friday. The 30-stock index dropped 1.66% for the week, bringing its monthly losses to 4.83%. The S&P 500 fell 1.11% and was down 2.08% for the week, bringing its monthly decline to 5.58%. The Nasdaq Composite slid 0.97% on Friday and 2.72% for the week. It is down 6.65% this month.

“Monetary policy has now turned increasingly restrictive, as the Fed raised rates 400 basis points in 9 months,” Ed Moya, senior market strategist at OANDA, wrote in a note to a client on Friday. “Recession risks will only increase now” [Fed chair Jerome Powell] indicated that we should expect ‘sustained growth’.”

The National Association of Home Builders survey, which gauges monthly sentiment, ends on Monday.

Investors will also be keeping an eye on some earnings reports coming later in the week. FedEx and Nike are both scheduled to report earnings results after the market close on Tuesday. As recession fears grow, earnings results will become more of a focus.

“Rates and inflation may have peaked, but we see that as a warning sign for profitability, a reality we believe is still under-appreciated,” wrote Morgan Stanley equity analyst Michael Wilson in a Monday note. Can’t be ignored, but it can’t be ignored anymore.”