US stock futures fall ahead of key inflation report
U.S. stock index futures edged lower on Tuesday as investors awaited a key inflation report for clues on the next interest rate moves, while JPMorgan Chase’s fourth-quarter results kicked off the earnings season.
JPMorgan shares rose 1.1% in choppy premarket trading after the bank posted quarterly profits that beat estimates, though gains were limited by a one-time charge tied to its deal with Goldman Sachs to take over Apple’s credit-card partnership. Other major banks, set to report later this week, are widely expected to deliver stronger quarterly results, supported by a rebound in dealmaking, News.Az reports, citing Reuters.
BNY Mellon raised its target for a key profitability measure, but its shares slipped 0.6%. Delta Air Lines shares fell 5.6%, despite projecting roughly 20% earnings growth in 2026, with weakness spreading across the airline sector—United Airlines and American Airlines each dropped about 3%.
At 6:55 a.m. ET, Dow E-minis were down 11 points, or 0.01%, S&P 500 E-minis fell 7.5 points, or 0.11%, and Nasdaq 100 E-minis dropped 67.25 points, or 0.26%.
Markets are bracing for the December inflation report at 8:30 a.m. ET, which is expected to show consumer prices rising again, potentially reinforcing the case for the Federal Reserve to keep interest rates on hold when policymakers meet later this month.
Wall Street opened the week on shaky footing after U.S. prosecutors launched a criminal investigation involving Fed Chair Jerome Powell, raising concerns over central bank independence and drawing criticism from leading Republicans. However, gains in major tech companies and Walmart pushed the S&P 500 and Dow to fresh record closes during the session.
High valuations have steered investors toward small-cap stocks, which have outperformed broader markets since the start of 2026, though sustainability remains uncertain. BlackRock Investment Institute strategists expect the earnings gap between the “Magnificent Seven” tech giants and the rest of the market to narrow, while growth in economically sensitive sectors and AI-driven productivity gains could offset potential earnings downgrades.
The Russell 2000 has risen 6.2% in the first seven trading days of 2026, compared with a 1.9% gain in the S&P 500. Intel shares climbed 3.4% and AMD added 1.9% after KeyBanc upgraded both chipmakers to “overweight.”
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