Following key averages' continued downward trend to start the week, stock futures are trading lower.

After the Bank of Japan indicated that it will expand its yield target range, stock futures went in the opposite direction, falling on Tuesday morning.

Futures contracts that were linked to the Dow Jones Industrial Average dropped by 236 points, or 0.72 percent. Futures contracts for the S&P 500 and the Nasdaq 100 dropped by 0.86 and 1.05 percent, respectively.

The Dow Jones Industrial Average dropped by more than 162 points, which is equivalent to a loss of around 0.5% of its value. The S&P 500 ended the day down 0.9%, while the Nasdaq Composite down over 1.5%. The market seems like it will finish the month and the year in the red, and investors' dreams for a Santa Claus bounce are quickly dwindling.

"There hasn't been any sign of Santa yet. "Fasten your seatbelts," said Louis Navellier, the founder of the growth investment firm Navellier & Associates. It would be nice to believe that all of the terrible news has been reported. The next move that the Fed makes, if at all, won't come until at least February. We are not closing the distance, but we are also not making up for the ground we lost last week.

Investors were tormented by concerns that the Federal Reserve could lead the economy down the path to a recession. The benchmark interest rate was increased by the central bank by fifty basis points one week ago, and policymakers stated that the terminal interest rate may grow to as high as five and one half percent.

Traders were subjected to additional pressure as a result of other central banks that were acting in a hawkish manner. Most recently, the European Central Bank raised interest rates and indicated that future hikes were likely.

According to Lawrence Gillum, a fixed income analyst at LPL Financial, "more than 90 percent of central banks have increased interest rates this year, making the (largely global) concerted effort unprecedented." "What's the good news? We believe that we are getting close to the end of these cycles of rate increasing, which could diminish the headwind that we've seen on global financial markets so far this year."

This week, just before the Christmas vacation, a small number of major corporations are expected to announce their quarterly results. On Tuesday, General Mills will report before the opening bell. Both Nike and FedEx are scheduled to disclose their earnings after the bell.

Housing starts numbers for the month of November are scheduled to be released on Tuesday morning. This coming week should provide a wealth of new understanding on the real estate sector. On Wednesday and Friday, respectively, the statistics for sales of new homes and existing homes will be made public.

This coming Friday will see the release of the personal consumption expenditures report for November, which is one of the Fed's favorite measures of inflation.