Investing.com — U.S. stock index futures rose on Wednesday, with investors cautious ahead of the release of key data on consumer inflation as well as big bank earnings.
At 05:45 ET (10:45 GMT), it was up 83 points, or 0.2%, up 9 points, or 0.2%, to gain 47 points, or 0.2%.
Wall Street indexes suffered a volatile session on Tuesday due to continued weakness in technology stocks. They also had a weak start to the year after falling from record highs by December.
It rose 0.1% and gained 0.5%, while it fell 0.2%.
CPI data offers several indicators of the rate
The focus was now squarely on upcoming inflation data, which is expected to provide more insight into the Fed’s interest rate plans.
The reading is due at 8:30 a.m. ET, and economists estimate that the main consumer price index rose 0.4% on the month in December, slightly faster than the 0.3% pace in the previous month. Compared to last year, the CPI is 2.9%, compared to 2.7% in November.
Excluding items such as food and fuel, the so-called “core” figure is forecast to be 0.3% on a monthly basis and 3.3% on an annual basis, the same as November.
At the start of the report, concerns were raised about nagging inflation, particularly after last week’s employment data. President-elect Donald Trump’s plans to impose stiff tariffs on allies and adversaries have also fueled concerns about price pressures.
Markets are bracing for a much slower pace of interest rate cuts in 2025 – a trend that could bode poorly for risk assets.
December, released on Tuesday, was weaker than expected, but the print provided some relief to markets as some measures of inflation, which also weigh on the data, remained high.
PCE data is the Fed’s preferred gauge of inflation and is due out later in the month.
Major banks report quarterly results
In the corporate sector, a number of big banks are due to release their latest quarterly returns on Wednesday, which investors are eyeing as a potential lifeline for the waning post-election rally in the stock market.
JPMorgan Chase (NYSE: ), Goldman Sachs (NYSE: ) and Citigroup (NYSE: ), as well as asset management giant BlackRock (NYSE: ), are due to release their numbers before the open on Wednesday.
Income from investment banking and trading is likely to be a focal point, especially after a rally in stocks following Trump’s election victory fueled by Wall Street hopes for a new era of looser regulations and lower taxes. Falling corporate borrowing costs could also improve top-line results.
Crude oil rose as US inventories fell
Oil prices rose on Wednesday, helped by a drop in U.S. crude inventories as well as fears that new sanctions on Russian oil exports will disrupt global supplies.
By 05:45 ET, U.S. crude futures (WTI) were up 0.3% at $76.61 a barrel, while the Brent contract added 0.2% at $80.08 a barrel.
Prices fell on Tuesday after the US Energy Information Administration predicted oil would come under pressure over the next two years as supply outstrips demand.
Still, the market found some support in a report late Tuesday that showed a decline in crude oil inventories in the US, the world’s largest oil consumer.
Traders also remain focused on Russian oil sanctions, amid uncertainty over how much Russian supply will be lost to the global market and whether alternative measures can make up the shortfall.
(Ambar Warrick contributed to this article.)
