NEW YORK – U.S. stock index futures dipped on Wednesday as investors prepared for earnings reports from major banks, including Citigroup, Bank of America, and Wells Fargo, while upcoming retail sales and producer price data were expected to provide fresh insight into the health of the economy.

In premarket trading, Bank of America (BAC.N) edged slightly higher, while Wells Fargo (WFC.N) and Citigroup (C.N) traded lower ahead of their fourth-quarter results. The moves follow JPMorgan’s (JPM.N) recent warning that a proposed ceiling on credit-card interest rates could hurt consumers and weigh on financial stocks.

Big Banks and Investment Banking Fees

Analysts anticipate that U.S. big banks will report a significant rise in investment banking fees, reflecting a revival in dealmaking activity in late 2025. Wall Street’s main indexes have stalled this week after the Dow Jones Industrial Average and S&P 500 touched record highs, as traders await earnings to see whether they meet elevated market expectations.

According to IBES LSEG data, analysts project that S&P 500 companies will deliver average fourth-quarter earnings growth of 8.8% year-on-year, boosting full-year 2025 bottom-line growth to 13.2%.

Wall Street Futures Movement

As of 5:10 a.m. ET, futures were down modestly:

• S&P 500 E-minis: -12.25 points, or -0.17%
• Dow E-minis: -83 points, or -0.17%
• Nasdaq 100 E-minis: -57.25 points, or -0.22%

The slight pullback comes as investors brace for key economic releases and monitor Federal Reserve commentary for signals on the trajectory of U.S. interest rates.

Inflation, Retail Sales, and Fed Speeches

After December’s expected consumer-price rise kept market bets on future rate cuts intact for the latter half of 2026, investors are watching Wednesday’s producer price index and retail sales reports, alongside speeches from Fed officials John Williams, Anna Paulson, Stephen Miran, and Neel Kashkari.

Interest rates are expected to remain unchanged for most of the first half of 2026, including at the Fed’s January meeting, provided inflation and economic growth remain steady. Traders continue to anticipate at least two rate reductions later in the year, according to LSEG data.

Geopolitical Context and Market Trends

Markets have so far largely overlooked geopolitical risks, such as potential U.S. intervention in Venezuela, with enthusiasm for artificial intelligence and strong fourth-quarter results supporting the record highs in major indexes.

The rally is also showing signs of broadening out in 2026, with the S&P 400 midcaps and S&P 600 smallcaps outperforming the large-cap S&P 500, indicating growing investor confidence in smaller companies.

Cybersecurity Concerns Impact Tech Stocks

Tech stocks faced pressure in premarket trading, with Palo Alto Networks (PANW.O) and Fortinet (FTNT.O) falling 3.3% and 2.5%, respectively. Reuters sources reported that Chinese authorities instructed domestic companies to halt the use of certain U.S. and Israeli cybersecurity software over national security concerns, adding a layer of uncertainty for cybersecurity providers.