Stock futures fall as key averages extend their losses to begin the week.

Stock futures dipped Tuesday morning, reversing course after the Bank of Japan announced an increase in its target yield range.

Futures related to the Dow Jones Industrial Average fell 236 points, or 0.72%. Futures on the S&P 500 and the Nasdaq 100 lost 0.86% and 1.05%, respectively.

The Dow fell more than 162 points, or 0.5%, during normal trade on Monday. The S&P 500 sank 0.9%, while the Nasdaq Composite dropped over 1.5%. Stocks are on track to end the month and the year in the red, and investors' dreams for a Santa Claus surge are vanishing quickly.

"There has yet been no glimpse of Santa. "Buckle up," warned Louis Navellier, founder of Navellier & Associates, a growth investing business. "One would want to believe that all of the terrible news is in. There are no more Fed movements until February at the earliest. We're not gapping down, but we're also not recouping last week's losses."

Fears that the Federal Reserve could throw the economy into a recession tormented investors. The central bank boosted its benchmark interest rate by 50 basis points last week, and policymakers warned that the terminal rate may rise to 5.1%.

Other hawkish central banks added to the pressure on traders, with the European Central Bank boosting rates and predicting more hikes last week.

"Over 90% of central banks have lifted interest rates this year, making the (largely) worldwide coordinated effort unprecedented" said Lawrence Gillum, fixed income strategist at LPL Financial. "What's the good news? We believe we are nearing the end of these rate hike cycles, which could alleviate the pressure on global financial markets this year."

A number of prominent firms will announce their quarterly results this week ahead of the Christmas break. General Mills will report before the market opens on Tuesday. Nike and FedEx will report after the bell.

In terms of economic data, November housing starts are due Tuesday morning. This week promises to be jam-packed with information about the housing business. Existing house sales data and new home sales data will be issued on Wednesday and Friday, respectively.

The Fed's favored indicator of inflation, personal consumption expenditures, is due on Friday.

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