Wall Street Futures Steady as Bank Earnings and Inflation Data Take Center Stage

U.S. stock index futures were largely unchanged on Tuesday evening as markets stabilized after Wall Street retreated from record highs earlier in the session. Investors remained cautious following notable losses in major financial stocks, particularly JPMorgan Chase, while mild consumer inflation data failed to alter expectations that the Federal Reserve will hold interest rates steady in the near term.

By early evening trading, S&P 500 futures dipped slightly to around 6,998 points, Nasdaq 100 futures hovered near 25,899 points, and Dow Jones futures edged down about 0.1% to roughly 49,374 points. Market sentiment remained restrained ahead of a busy Wednesday that includes key bank earnings reports and the release of U.S. producer price index (PPI) inflation data.

Attention is firmly on earnings from major banks such as Bank of America, Wells Fargo, and Citigroup, all scheduled to report before the market opens. These results are expected to provide fresh insight into the health of the U.S. economy and follow disappointing investment banking revenues reported by JPMorgan for the December quarter. JPMorgan shares slid more than 4% on Tuesday after the bank warned that proposed caps on credit card interest rates could negatively impact consumers and economic growth, dragging down the broader financial sector.

Beyond earnings, inflation remains a central theme. December’s consumer price index met expectations, with core inflation showing slight cooling, but the data did little to change market bets that the Fed will keep rates unchanged at its late-January meeting. According to CME FedWatch, traders see more than a 95% probability of rates staying within the 3.50% to 3.75% range.

Technology stocks delivered mixed signals. NVIDIA’s clearance to sell H200 AI chips in China drew limited reaction amid uncertainty over Beijing’s approval, while Salesforce shares tumbled after its new AI agent underwhelmed investors. In contrast, Intel and AMD rallied following bullish analyst upgrades. Overall, Wall Street remains cautious as earnings, inflation data, and geopolitical tensions shape near-term market direction.