U.S. stock Futures Slip traded lower early Wednesday, extending weakness after the S&P 500 retreated from record highs reached earlier in the week, as investors looked ahead to a fresh round of bank earnings and key economic data.
Futures linked to the Dow Jones Industrial Average fell by about 101 points, or 0.2%. S&P 500 futures were down roughly 11.75 points, also 0.2%, while Nasdaq 100 futures declined around 41 points, or 0.2%.
Market participants are focused on earnings reports due before the opening bell from major lenders including Bank of America, Wells Fargo and Citigroup. Investors will also be watching December’s producer price index, set for release Wednesday morning, for further clues on inflation trends.
During Tuesday’s regular session, U.S. equities closed in negative territory. The S&P 500 slipped 0.2%, the Dow Jones Industrial Average dropped nearly 400 points, or about 0.8%, and the Nasdaq Composite edged down 0.1%.
U.S. stock Futures Slip: Wall Street Futures Edge Lower Ahead of Key Bank Earnings Reports
Financial stocks led the losses. JPMorgan Chase shares sank more than 4% after its fourth-quarter investment banking revenue appeared to fall short of expectations. Other major banks, including Goldman Sachs and Bank of America, also declined in response. Meanwhile, oil prices surged more than 2% on Tuesday after President Donald Trump canceled meetings with Iranian officials and told protesters that “help is on its way.” The rally in crude lifted energy stocks, with the sector gaining about 1.5%.
Financial shares have also been pressured by Trump’s proposal to cap credit card interest rates at 10% for one year. Payment giants Mastercard and Visa both finished Tuesday’s session lower. More broadly, markets have been digesting a series of policy demands from the president, including statements opposing dividends and share buybacks for defense companies and calls to restrict large institutional investors from purchasing single-family homes.
Economic Uncertainty Weighs on U.S. Futures Amid Rate Concerns
Concerns over Federal Reserve independence resurfaced after Trump continued to criticize Fed Chair Jerome Powell on Tuesday, as the Justice Department conducts a criminal investigation into the central bank chief.
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According to Paul Meeks, head of technology research at Freedom Capital Markets, markets may now be starting to price in the possible effects of these developments. He described the recent decline as a reaction to pressure on the Fed and weaker-than-expected bank earnings, particularly amid discussions around limiting credit card interest rates. “It’s creating unnecessary anxiety,” Meeks said.
However, the veteran tech analyst noted that the pullback could present attractive entry points for investors, especially ahead of upcoming updates from major technology companies on their 2026 outlooks and planned spending on artificial intelligence.
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