Stock futures were steady in overnight trading on Sunday as investors braced for the final trading day in what could be the worst month for the S&P 500 since March 2020.

Dow futures were down 22 points. S&P 500 futures were flat and Nasdaq 100 futures were unchanged.

Stocks have had a miserable January. The S&P 500 is headed for its worst month since the pandemic-spurred market turmoil in March 2020 as investors worry about inflation, supply chain issues and the upcoming rate hikes from the Federal Reserve.

Nearing correction territory is the 500-stock average, which has fallen more than 8 percent from an intraday peak earlier in January. The S&P 500 is down 7% in January.

The Dow Jones Industrial Average also is heading for its worst January ever since March 2020. The Dow Jones Industrial Average is down 4.4% for this month.

Nasdaq Composite is about 15% below its November record close. It is heading for its worst month ever and its worst first month in a year. Technology-oriented averages are down by 12% in January.

The Russell 2000 small-cap benchmark is also in bear market.

The Federal Reserve met last week. indicated In order to fight historically high inflation, it will likely raise interest rates. Markets are now pricing in five quarter-percentage-point interest rate hikes in 2022.

Last week saw dramatic swings in the major averages, including the Dow’s move amidst turmoil. gut-wrenching 1,000 points in both directions. The Dow closed the week at 1.3% more. The S&P 500 gained 0.8% last week and the Nasdaq was about flat for the week.

Michael Arone of State Street Global Advisors, chief investment strategist said that “this all results in increased market volatility until investors digest these transition periods.” On the flip side, it is important that earnings continue to grow and the economy continues to grow. It’s sufficient to maintain markets. But, I feel they’re adapting to the change in monetary, fiscal, and earnings policy.”

The earnings season continues with reports by Alphabet (Samsung, Meta Platforms), Amazon, and others. About one-third of S&P 500 companies have reported fourth-quarter earnings and 77% have beaten Wall Street’s earnings expectations, according to FactSet.

Jim Paulsen is the chief investment strategist at Leuthold Group. He stated that “Mostly this week it will be about whether or not the correction low has already entered” and whether Monday’s intraday low was again violated.  “The longer the S&P stays above last Monday’s low or moves even further away on the upside, the more that calm will return and fundamentals may again start to dominate emotions in driving the market.”

This week’s key economic data includes Friday’s Jan employment report.

—CNBC’s Patti Domm contributed to this report.