US Session: U.S. markets are expected to open lower today amid weaker corporate earnings

Five key news for investors at the start of the trading day:

1. Inflation check
   The core Consumer Price Index for December came in lower than expected on both a monthly and annual basis. This is good news for consumers hoping for relief from rising costs, but it could also give the Federal Reserve an argument not to cut interest rates again.

The data show an increase of 0.2% compared to November and 2.6% year over year, versus forecasts of 0.3% and 2.7%. Prices of products such as coffee and lettuce are putting slight upward pressure on inflation. However, investors believe that these cooler-than-expected figures are unlikely to prompt the Fed to implement another rate cut this month. The next inflation data release—this time for producer prices—is expected soon.

Experts note that President Donald Trump’s tariffs are also a factor affecting inflation, with a Supreme Court ruling on their legality potentially coming as early as today.

2. Banking sector
   The first earnings reports from banks show mixed results. Bank of America and Citigroup beat expectations for the fourth quarter, while Wells Fargo fell short of revenue forecasts.

JPMorgan shares drop by about 4% after the bank’s chief financial officer signals that the bank will oppose Trump’s proposal for a one-year cap of 10% on credit card interest rates. Goldman Sachs and Morgan Stanley are scheduled to release their earnings later this week.

3. End of an era
   Luxury retailer Saks Global files for Chapter 11 bankruptcy protection after running into liquidity problems. This gives the company an opportunity to restructure its business, manage its debt, and seek a buyer.

The new chief executive officer is former Neiman Marcus head Geoffroy van Raemdonck, who takes over immediately following the brief and unstable leadership transition under Richard Baker. Saks has also secured approximately $1.75 billion in financing to support its restructuring efforts.

4. Oil and geopolitics
   President Trump announces that he is canceling all meetings with Iranian representatives amid the continued suppression of protests in the country. He pledges support and urges Iranians to continue protesting, while threatening “major consequences” for violence against demonstrators.

Crude oil and Brent prices rise by more than 2% and continue to climb in early trading.

5. (Virtual) reality and artificial intelligence
   Meta continues its pivot toward artificial intelligence after having shifted toward the metaverse years earlier. The company is currently planning to lay off about 10% of the Reality Labs team involved in VR projects—more than 1,000 jobs. Some VR game studios will also be shut down.

Meta is not abandoning virtual reality entirely and will attempt to attract developers from Roblox to build content for the Horizon Worlds platform.

S&P 500

U.S. stock index futures fall on Wednesday after the S&P 500 retreats from record levels reached earlier in the week, as investors digest a new round of corporate earnings reports.

Dow Jones futures lose 136 points, or 0.3%, the S&P 500 slips 0.4%, and the Nasdaq 100 declines by 0.5%.

Wells Fargo is among the weakest performers, falling more than 2% after reporting fourth-quarter revenue below expectations. At the same time, Citigroup gains more than 1% after its results beat forecasts.

On Tuesday, Wall Street posted losses, led by a nearly 400-point drop in the Dow, with the financial sector remaining the weakest. Shares of JPMorgan Chase fall more than 4% after fourth-quarter investment banking revenue disappointed the market. Goldman Sachs and Bank of America follow with declines.

President Trump’s attacks on Federal Reserve Chair Jerome Powell also continue, as concerns grow over the central bank’s independence amid a Justice Department investigation.

According to Paul Meeks, head of technology research at Freedom Capital Markets, stock prices are beginning to reflect the potential impact of Trump’s demands. “This is a consequence of the threats toward Powell and the bank earnings affected by discussions of a 10% cap on credit card interest rates… simply unnecessary tension,” he commented.

Meeks adds that Tuesday’s pullbacks are likely to create “good buying opportunities” ahead of the expected announcements from major technology companies regarding their 2026 outlooks and investments in artificial intelligence.