US stock futures were little changed on Wednesday morning as investors braced for the release of the December consumer price index (CPI), a critical gauge of inflation, CNBC reports.
Futures tied to the Dow Jones Industrial Average rose by 10 points, or 0.02%, while S&P 500 futures showed a slight uptick, and Nasdaq 100 futures climbed 0.12%.
In the previous trading session, the Dow gained 221.16 points, or 0.52%, and the S&P 500 added 0.11%. However, the Nasdaq Composite saw a pullback, falling 0.23% due to weakness in tech stocks.
This price action followed a lighter-than-expected report on wholesale inflation for December, with the producer price index (PPI) rising by just 0.2%, below the expected 0.4% increase. With this data in the rearview mirror, market participants are now focusing on the consumer price index report, scheduled for release at 8:30 a.m. ET. Economists polled by Dow Jones forecast a 0.3% monthly increase in headline CPI and a 2.9% year-over-year rise. The CPI data will be closely scrutinized by the Federal Reserve as it prepares to make its interest rate decision later this month.
Additionally, the fourth-quarter earnings season is ramping up, with several major financial services companies set to report their results before the opening bell on Wednesday. Companies including BlackRock, JPMorgan Chase, Wells Fargo, Goldman Sachs, and Citigroup are expected to release their earnings, drawing attention to the health of the financial sector.
Jay Hatfield, founder of Infrastructure Capital Advisors, expressed optimism regarding earnings, stating:
“We do think earnings will be stronger. The economy is strong in the fourth quarter. Usually, companies learn if they have a problem by then, and they’re probably going to be pretty optimistic about the future because the Trump administration is pro-business.”
Hatfield further noted that this optimism extends into 2025, as CEOs appear hopeful about future growth.
In Tuesday’s trading session, seven out of 11 sectors ended higher. Utilities led the way with a 1.3% gain, while the communication services sector was the worst performer, losing 0.97%. Sectors such as materials, real estate, and healthcare closed near 52-week highs, reflecting broad sectoral strength.
