view original
postUS stock futures retreated on Wednesday as more big bank earnings rolled in, with investors on watch for fresh inflation data, a potential Supreme Court ruling on US tariffs, and signs of potential US military action on Iran.
Contracts on the tech-heavy Nasdaq 100 (NQ=F) slid 0.5%, while those on the S&P 500 (ES=F) fell 0.4%. Meanwhile, Dow Jones Industrial Average futures (YM=F) moved down 0.3%, coming off a pullback in financial stocks that dragged Wall Street indexes off record highs.
Worries rose about US action against Iran, as President Trump ramped up military threats in response to a deadly crackdown on public protests. Oil prices climbed to their highest levels since October after Reuters reported US staff have been told to leave an American airbase in Qatar.
That provided a somber backdrop to quarterly reports from Bank of America (BAC) and Wells Fargo (WFC), which both posted a surge in profit as trading activity powered results. The results were closely watched after JPMorgan Chase (JPM) led off earnings season Tuesday with an underwhelming release.
On the macro front, investors will parse fresh wholesale inflation data when November’s producer price index is released this morning. A mild reading on consumer inflation on Tuesday firmed up bets on the Federal Reserve holding interest rates steady in January. Also due are retail sales figures for November, which could shed more light on how American consumers are holding up.
The prospect of a boost from more Fed rate cuts helped send gold (GC=F) and silver (SI=F) to fresh record highs, with silver briefly breaking above $90 for the first time. The blistering rally in precious metals is also being stoked by rising geopolitical tensions and escalated attacks on the Fed, both with Trump at their center.
Meanwhile, markets are on alert to hear from the Supreme Court, which has yet to rule on a closely watched challenge to Trump’s authority to set tariffs. Wednesday is scheduled as an opinion release day for the court, but it doesn’t say in advance which decisions are on the docket. Trump has framed the case as a national security flashpoint, saying if it rules against him, “WE’RE SCREWED!”
LIVE 12 updates
-
Oil climbs as US airbase report fans fears of Iran escalation
Bloomberg reports:
Read more here.
-
BofA tops estimates as trading beats and lending revenue rises
Bank of America (BAC) beat on fourth quarter earnings as net interest income came in above expectations.
Shares of the big Wall Street bank moved up in premarket after the results, which also showed a rise in equities trading revenue in a year marked by Trump-fueled uncertainty.
Bloomberg reports:
-
Wells Fargo profit hit by severance as headcount drops by 5,600
Wells Fargo’s (WFC) profit fell short of Wall Street estimates for the fourth quarter, hit by severance costs amid a cost-cutting 5,600 reduction in headcount.
Shares of the big bank tipped over 1% lower in premarket, after net income also missed the mark.
Bloomberg reports:
-
Google’s Apple AI deal marks ‘huge loss’ for OpenAI
OpenAI (OPAI.PVT) has been leading the AI race for some time and was hoping to announce a deal with Apple (AAPL) last year, but the launch of Alphabet’s (GOOG, GOOGL) Gemini 3 and a new deal with the iPhone maker may have changed things.
Yahoo Finance’s Laura Bratton looks at how Google’s new deal with Apple may be a big loss for OpenAI.
Read more here.
-
India’s Infosys beats Q3 revenue view; ups annual forecast range
Infosys (INFY) stock climbed higher by 2% before the bell on Wednesday after reporting better-than-expected third-quarter revenue, helped by a pickup in tech demand from its financial services clients.
Reuters reports:
Read more here.
-
Premarket trending tickers: Intel, Rivian, Palo Alto, and Fortinet
Intel (INTC) stock rose 3% before the bell on Wednesday following its upgrade from Keybanc analysts on Tuesday.
Rivian (RIVN) shares fell 3% during premarket trading on Wednesday. The US automaker was downgraded by analysts at UBS to Sell from Neutral. UBS raised its price target for the electric vehicle company to $15 from $13.
Cybersecurity firms Palo Alto (PANW) and Fortinet Inc. (FTNT) both edged lower by 3% before the bell following a report in Reuters that Chinese authorities have told domestic companies to stop using cybersecurity software made by around a dozen firms from the US and Israel due to national security concerns.
-
Blistering metals rally sends gold, silver and copper to records
Bloomberg reports:
Read more here.
-
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.
Read more here.
-
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:
Read more here.
-
Chinese index slips after minimum margin requirement raised to 100%
Bloomberg reports:
Read more here.
-
Silver reaches record, gold pushes higher as global insecurity bolsters haven demand
Bloomberg reports:
Read more here.
-
Netflix debates offering Warner Bros. all cash bid
Bloomberg reports:
Read more here.
