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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 0.6%, 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 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. Citigroup (C) stock jumped, meanwhile, as the bank posted an 84% jump in financial advisory fees. The results were closely watched after JPMorgan Chase (JPM) led off earnings season Tuesday with an underwhelming release.
On the macro front, investors parsed muted wholesale inflation data, adding to a mild reading on consumer inflation on Tuesday that firmed up bets on the Federal Reserve holding interest rates steady in January. Retail sales, meanwhile, rose more than expected in November in a shutdown-delayed release.
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.
Also, 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!”
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PPI shows wholesale goods inflation at highest level since February 2024
The Producer Price Index (PPI) for November, released Wednesday after a delay due to the US government shutdown last fall, showed prices for final goods and services purchased by businesses rose 0.2% during the month after edging up 0.1% in October. The uptick was as projected by economists tracked by Bloomberg.
The change was driven by a 0.9% increase in prices for final goods, or finished products — marking the largest jump since February 2024, according to the US Bureau of Labor Statistics. The increase was fueled by prices for gasoline, which soared 10.5% during the month. Excluding food and energy, the prices of goods rose just 0.2%.
Year-over-year, the PPI showed wholesale inflation coming in at 3%, more than the 2.7% expected by economists. Excluding food, energy and trade services, prices for final demand goods and services rose 3.5% — the biggest climb since March 2025 and more than the 2.9% projected.
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Retail sales ticked higher in November
A delayed release from the US Census Bureau on Wednesday showed retail and food services sales totaled $735.9 billion in November, up 3.3% from the year-ago period and 0.6% from the previous month. The month-over-month change was greater than the 0.5% uptick projected by economists tracked by Bloomberg.
The gain was driven by a resurgence in auto sales in November.
Meanwhile, total sales from September through November were also 3.6% higher than the previous year.
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Oil climbs as US airbase report fans fears of Iran escalation
Bloomberg reports:
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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:
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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:
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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.
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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:
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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.
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Blistering metals rally sends gold, silver and copper to records
Bloomberg reports:
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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%
Bloomberg reports:
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Silver reaches record, gold pushes higher as global insecurity bolsters haven demand
Bloomberg reports:
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Netflix debates offering Warner Bros. all cash bid
Bloomberg reports:
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