Stock futures fall after key averages open with losses.

Futures dipped Tuesday morning as the Bank of Japan widened its yield target range.

Futures on the Dow Jones Industrial Average fell 236 points, or 0.7%. Futures for the S&P 500 and Nasdaq 100 lost 0.86 and 1.05 percent, respectively.

On Monday, the Dow fell 162 points, or 0.5%. The S&P 500 plummeted 0.9% while the Nasdaq dropped 1.5%. Stocks are set to conclude the month and year in the red, and investors' hopes for a Santa Claus bounce are vanishing quickly.

Still no Santa. "Brace yourself," advised Navellier & Associates founder Louis Navellier. "We'd like to assume all the terrible news is out. The next Fed action is in February. We're not gapping down but not recouping last week's losses.

Fears that the Fed could cause a recession troubled markets. Last week, the central bank boosted its benchmark interest rate by 50 basis points and said the terminal rate may rise to 5.1%.

Last week, the European Central Bank raised rates and forecast future hikes, adding to the pressure on traders.

"Over 90% of central banks have raised interest rates this year," said Lawrence Gillum, fixed income strategist at LPL Financial. Good news? We think rate hikes are nearing a halt, which could lessen the headwind on global financial markets this year.

Few significant corporations will release quarterly results this week before Christmas. Tuesday is General Mills's bell. FedEx and Nike report after the bell.

November housing starts data is coming Tuesday. This week promises home market insights. Wednesday and Friday will provide existing home and new home sales figures.

November's personal consumption expenditures report, a Fed favorite, is due Friday.