Stock futures fall after key averages continue their losses to begin the week.

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

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

The Dow dropped more than 162 points, or 0.5%, during normal trade on Monday. The S&P 500 sank 0.9%, while the Nasdaq Composite fell 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 to be a sighting of Santa. "Buckle up," advised Louis Navellier, founder of growth investing firm Navellier & Associates. "One would like to believe that all of the terrible news has been delivered. There are no more Fed movements until February at the earliest. We're not gapping down, but we're also not making up for 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 indicated that the terminal rate may rise as high as 5.1%.

Other hawkish central banks added to the pressure on markets, with the European Central Bank boosting rates and forecasting 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. "The good news? We believe we are nearing the end of these rate hike cycles, which may 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 release its earnings report before the market opens on Tuesday. Nike and FedEx are scheduled to report after the bell.

In terms of economic data, the November housing starts report is due Tuesday morning. This week promises a wealth of information about the housing business. Existing-home sales data and new-home sales data will be announced on Wednesday and Friday, respectively.

The personal consumption expenditures report for November, the Fed's favored measure of inflation, is due on Friday.