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US stock futures trod water on Wednesday ahead of another batch of big bank earnings and a potential Supreme Court decision on US tariffs, poised to add to a pullback that dragged the Jones Industrial Average and the S&P 500 off record highs.
Dow futures (YM=F) slipped roughly 0.2%, while those on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) were 0.1% lower on the heels of a losing session.
In a week defined by big bank earnings, Bank of America (BAC), Wells Fargo (WFC) and Citigroup (C) are all set to report earnings before market open on Wednesday. Investors will also parse fresh inflation data when December’s producer price index is released. Their reports come after JPMorgan Chase (JPM) led off earnings season Tuesday with an underwhelming release, spurring a sell-off in its shares.
Investors will be also paying close attention to the Supreme Court, which has yet to rule on a closely watched challenge to President Trump’s tariff authority. The first potential decision date passed last week with no changes to the status quo, but the court has its next scheduled opinion release for Wednesday.
In a social media post on Monday, Trump framed the case as a national security flashpoint, writing, “If the Supreme Court rules against the United States of America on this National Security bonanza, WE’RE SCREWED!”
Meanwhile, Trump’s criticism of Federal Reserve Chair Jerome Powell escalated Tuesday, adding to concerns about the central bank’s independence as the Justice Department began a criminal investigation into the Fed leader. The legal move has been contentious, with Trump facing pushback from business leaders and even fellow Republicans amid question’s over the Fed’s independence.
Financial names also face presidential pressure following Trump’s renewed push for a one-year cap of 10% on credit card interest rates. Shares of Visa (V) and Mastercard (MA) closed lower Tuesday as investors weighed the potential impact on payment networks.
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Global funds turn to China stocks, yuan in big bets for 2026
Bloomberg reports:
Investors are ramping up bets on China’s stocks (^HSCE) and currency as 2026 kicks off, signaling a more decisive shift into the country’s assets at a time of rising global uncertainties.
Global investment firms from Goldman Sachs Group Inc. (GS) to Bernstein Societe Generale Group have lifted their assessment of the world’s second-largest equities market, citing compelling valuations, supportive industry policies and a rosy earnings outlook.
As Beijing allowed the yuan to breach the key 7-per-dollar level, market participants are also doubling down on the currency, with some predicting it to rise to as strong as 6.25 this year. Citigroup Inc. (C), BNP Paribas Asset Management and Bank of America Corp. (BAC) are among those favoring the yuan.
The louder bullish chorus has come as China staged a rare stock and currency twin rally last year, a virtuous cycle that may further restore confidence in the country’s assets. The surprise resilience in some parts of the world’s No. 2 economy, from booming exports to recovering factory activity and a stable banking system, also draws hope that laggards such as property and consumer stocks may deserve another look too.
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BP flags up to $5 billion of energy transition writedowns
BP (BP, BP.L) stock slipped lower on Wall Street and in London after the energy giant said it expects to wipe up to $5 billion off the value of its green energy businesses.
The fourth-quarter writedowns come just weeks after BP replaced its CEO in a turnaround push, and bring its total writedowns in the past two years to around $20 billion.
Bloomberg reports:
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Chinese index slips after minimum margin requirement raised to 100%
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Silver reaches record, gold pushes higher as global insecurity bolsters haven demand
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Netflix debates offering Warner Bros. all cash bid
Bloomberg reports:
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