Futures Ease as Investors Brace for CPI Report and Major Bank Results

Key Moments

U.S. stock index futures traded slightly lower, with Nasdaq 100 Futures underperforming with a 0.3% decline.
Markets are focused on the upcoming December CPI report, with both headline and core inflation expected to match or exceed November readings.
Fourth-quarter earnings season is set to ramp up, led by results from major U.S. banks including JPMorgan Chase, Bank of New York Mellon, Bank of America, Wells Fargo, and Citigroup.

Futures Slip After Record Closes on Wall Street

U.S. equity index futures edged lower on Tuesday as market participants positioned themselves ahead of key inflation data and a wave of earnings reports from large financial institutions.

At 05:35 ET (10:35 GMT), Dow Jones Futures were down 60 points, or 0.1%. S&P 500 Futures declined 10 points, or 0.1%, while Nasdaq 100 Futures fell 65 points, or 0.3%.

These moves followed a positive session on Monday, when major U.S. stock benchmarks ended higher. The S&P 500 and the Dow Jones Industrial Average both closed at new record highs, recovering from earlier weakness tied to concerns over the implications of a criminal investigation into Powell and President Donald Trump’s proposed cap on credit card rates.

CPI Report in Focus as Fed Path Weighed

Attention is now turning to the release of the December U.S. consumer price index, a key measure of inflation closely watched by markets and policymakers.

Consensus expectations are for consumer prices in the U.S. to rise by 2.7% over the twelve months to December, in line with the 2.7% rate recorded in November. On a month-on-month basis, CPI is anticipated to increase by 0.3%, also matching November’s pace of 0.3%.

When excluding more volatile components such as food and energy, core CPI is projected to firm modestly. Forecasts point to a year-on-year rise of 2.7%, compared to 2.6% previously, and a monthly increase of 0.3%, up from 0.2% in November.

Inflation dynamics and the condition of the labor market are described as the two primary factors guiding the Federal Reserve’s interest rate decisions. Nonfarm payrolls data released last week indicated resilience in the labor market.

This combination of steady labor demand and persistent inflation pressures could discourage the Fed from delivering additional rate cuts this year. Market pricing has already moved away from the possibility of a rate reduction in January, although expectations still reflect two further cuts in 2026.

Key Inflation and Market Metrics

Indicator	Period / Basis	Expected / Recent Value
Headline CPI	Year-on-year, December	2.7% (expected, same as November)
Headline CPI	Month-on-month, December	0.3% (expected, same as November)
Core CPI	Year-on-year, December	2.7% (expected, vs. 2.6% in November)
Core CPI	Month-on-month, December	0.3% (expected, vs. 0.2% in November)
Dow Jones Futures	Change at 05:35 ET	-60 points, or -0.1%
S&P 500 Futures	Change at 05:35 ET	-10 points, or -0.1%
Nasdaq 100 Futures	Change at 05:35 ET	-65 points, or -0.3%

Major U.S. Banks Kick Off Earnings Season

In addition to inflation, investors are preparing for the start of the fourth-quarter reporting season, with a particular focus on the banking sector.

JPMorgan Chase (NYSE:JPM) and Bank of New York Mellon (NYSE:BK) are scheduled to release their results on Tuesday. They will be followed on Wednesday by Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), and Citigroup (NYSE:C).

Together with the CPI release, these earnings updates are poised to help shape risk sentiment in U.S. equities in the early weeks of 2026. Strong performance from the big banks could support a more constructive view of the broader corporate landscape and ease some of the unease among more cautious investors.

Trump Flags Potential AI Data Center Power Billing Changes

On the policy front, President Donald Trump commented on energy costs related to artificial intelligence and data center infrastructure.

Trump said on Monday that his administration was engaged in discussions with Microsoft (NASDAQ:MSFT) and several other large technology firms to ensure that the higher utility expenses tied to data centers do not feed through into residential electricity bills.

“I never want Americans to pay higher Electricity bills because of Data Centers… the big Technology Companies who build them must ‘pay their own way,’” Trump said in a social media post.

Although he did not outline the specific nature of the “major changes” under consideration, his remarks touched on mounting public concerns over the potential impact of data center power usage on household utility costs.

Any new regulatory measures, however, could also imply increased operating costs for companies that run AI data centers.

Oil Extends Gains on Iranian Supply Concerns

In commodities, crude oil prices advanced, marking a fourth straight session of gains, as intensifying anti-government protests in Iran fueled worries about possible disruptions to supply from a key OPEC producer.

Brent futures climbed 1.2% to $64.61 per barrel, while U.S. West Texas Intermediate (WTI) crude futures added 1.5% to $60.23 per barrel.

In the previous session, Brent reached its highest level in seven weeks, and WTI rose to a one-month high.