US stock futures moved lower on Wednesday as major banks released quarterly results. Investors were also watching for new inflation figures, a possible Supreme Court decision on tariffs, and indications of potential US military action against Iran.
Futures for the Nasdaq 100 dropped 0.6%, while S&P 500 futures fell 0.4%. Dow Jones Industrial Average futures declined 0.3%, following a pullback in financial stocks that had previously pushed Wall Street indexes off recent highs.
Concerns about US action toward Iran increased after President Trump escalated military threats in response to a deadly crackdown on protests. Oil prices reached their highest levels since October following a Reuters report that US staff were told to leave an American airbase in Qatar.
This backdrop accompanied earnings reports from Bank of America and Wells Fargo. Bank of America posted a surge in profit driven by trading activity. Wells Fargo's profit fell short of estimates, impacted by severance costs from a reduction of 5,600 employees. Citigroup stock rose after the bank reported an 84% jump in financial advisory fees. These results followed JPMorgan Chase's underwhelming earnings release on Tuesday.
On the economic front, investors examined muted wholesale inflation data. This followed a mild consumer inflation reading on Tuesday, reinforcing expectations that the Federal Reserve will keep interest rates steady in January. Separately, a delayed release showed retail sales rose more than expected in November.
The prospect of further Fed rate cuts helped push gold and silver to new record highs, with silver briefly surpassing $90 for the first time. The rally in precious metals is also being fueled by rising geopolitical tensions and escalated attacks on the Fed, both centered on Trump.
Markets are also alert for a Supreme Court ruling on a challenge to Trump's authority to set tariffs. Wednesday is scheduled as an opinion release day for the court, though it does not announce decisions in advance. Trump has called the case a national security flashpoint, stating that if the court rules against him, "WE’RE SCREWED!"
The Producer Price Index for November, released after a delay from last fall's government shutdown, showed prices for final goods and services purchased by businesses rose 0.2% for the month. This matched economist projections. Prices for final goods jumped 0.9%, the largest increase since February 2024, driven by a 10.5% surge in gasoline prices. Year-over-year, wholesale inflation came in at 3%, higher than the 2.7% expected.
Retail and food services sales totaled $735.9 billion in November, up 3.3% from a year ago and 0.6% from the previous month, exceeding forecasts. The gain was driven by a resurgence in auto sales.