U.S. stock futures edged lower on Wednesday as investors weighed persistent concerns over inflation, trade policy, and upcoming earnings reports.
As of early morning ET:
-
Dow futures were flat
-
S&P 500 futures dipped 0.1%
-
Nasdaq futures fell 0.3%
The latest Consumer Price Index (CPI) report showed inflation ticked higher in June, particularly in sectors exposed to tariffs, raising doubts about the Federal Reserve’s ability to cut rates in the near term. Market focus now shifts to the upcoming Producer Price Index (PPI) and the Fed’s Beige Book for deeper insight into economic conditions.
On the trade front, President Donald Trump announced new tariff threats, including a 200% duty on pharmaceutical imports and a 19% levy on goods from Indonesia. Markets remain cautious as additional tariffs are expected to take effect on August 1, increasing risks for global trade flows.
While JPMorgan, Citigroup, and Wells Fargo all reported earnings above expectations, executives flagged ongoing trade tensions as a risk to future performance. Investors now await results from Bank of America, Goldman Sachs, Morgan Stanley, and Johnson & Johnson later this week.
Despite a steady demand outlook, oil prices edged lower, as markets largely shrugged off Trump’s warning about a possible ban on Russian oil imports, opting for a wait-and-see stance on geopolitical risk.