US stock futures declined on Wednesday as major banks released quarterly earnings. Investors were also watching for new inflation data, a potential Supreme Court ruling on tariffs, and signs of US military action regarding Iran.
Contracts on the Nasdaq 100 slid 0.5%, while S&P 500 futures fell 0.4%. Dow Jones Industrial Average futures moved down 0.3%. This followed a pullback in financial stocks that had previously dragged Wall Street indexes from record highs.
Concerns about US action against Iran increased. President Trump escalated military threats in response to a deadly crackdown on public protests in Iran. Oil prices rose to their highest levels since October after a Reuters report indicated US staff were told to leave an American airbase in Qatar.
This backdrop accompanied quarterly reports from Bank of America and Wells Fargo. Bank of America posted a surge in profit as trading activity boosted results. Wells Fargo's profit was impacted by severance costs amid a headcount reduction of 5,600. Citigroup results were next, closely watched after JPMorgan Chase began earnings season on Tuesday with an underwhelming release.
On the economic front, investors awaited the November producer price index for wholesale inflation data. A mild consumer inflation reading on Tuesday strengthened expectations the Federal Reserve would hold interest rates steady in January. November retail sales figures were also due, which could provide insight into consumer strength.
The prospect of further Fed rate cuts helped send gold and silver to fresh record highs. Silver briefly broke above $90 for the first time. The rally in precious metals was also fueled by rising geopolitical tensions and escalated attacks on the Fed, with President Trump at the center of both.
Markets were alert for a Supreme Court ruling on a challenge to Trump's authority to set tariffs. Wednesday was scheduled as an opinion release day, but the court 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!"