Futures on equities fall as key averages extend losses to start the week.

As a result of the Bank of Japan's announcement to expand the yield target range, stock market futures reversed course and declined on Tuesday morning.

Futures on the Dow Jones Industrial Average declined by 236 points, or 0.72 percent. Futures for the S&P 500 and Nasdaq 100 declined by 0.86 and 1.05 percentage points, respectively.

During Monday's normal trading session, the Dow lost about 162 points, or around 0.5%. The S&P 500 decreased by 0.9%, while the Nasdaq Composite declined by about 1.5%. The market is on track to close the month and the year in the red, and investors' dreams for a Santa Claus bounce are rapidly diminishing.

"Santa Claus has not yet been spotted. "Fasten your seatbelts," said Louis Navellier, the founder of the firm Navellier & Associates, which specializes in growth investing. "One would hope that all the terrible news has been reported. The Fed will not act again until at least February. We're not gapping down, but we're not making up for last week's losses either.

Investors were concerned that the Federal Reserve could trigger a recession. The central bank boosted its benchmark interest rate by 50 basis points last week, and policymakers hinted that the terminal rate may reach 5.1%.

Other central banks in hawkish mode exerted more pressure on markets, with the European Central Bank increasing interest rates and its outlook for future rate hikes last week.

"More than 90 percent of central banks have raised interest rates this year, an unprecedented (mainly global) concerted effort," said Lawrence Gillum, fixed income strategist at LPL Financial. "The excellent news? We believe that the conclusion of these rate-hiking cycles is near, which should reduce the headwinds we've witnessed on global financial markets this year."

This week, prior to the Christmas holiday, a few of large firms will release their quarterly results. General Mills will report Tuesday morning before the bell. Nike and FedEx are scheduled to disclose earnings following the closing bell.

The November housing starts report is coming Tuesday morning, according to economic data. This week promises to provide plenty housing business insight. Existing house sales data will be announced on Wednesday and new home sales data will be issued on Friday.

The Fed's favored indicator of inflation, the November personal consumption expenditures data is coming on Friday.