U.S. stock futures pointed slightly lower early Tuesday as investors weighed the season’s first major earnings reports while preparing for a crucial update on inflation. The cautious mood reflects growing uncertainty over when the Federal Reserve might adjust interest rates again.
Before the opening bell, futures tied to the S&P 500 and Dow Jones Industrial Average slipped about 0.1%, while Nasdaq futures dipped roughly 0.2%. Traders appeared hesitant to make bold moves ahead of the Labor Department’s inflation release, which could shape expectations for monetary policy in the weeks ahead.
Among early movers, JPMorgan delivered a solid performance. The banking giant posted stronger-than-expected revenue and profit, driven by resilient trading activity and steady growth in its consumer banking operations. Its shares edged modestly higher, signaling confidence in the bank’s diversified business model.
In contrast, Delta Air Lines struggled despite narrowly beating fourth-quarter earnings forecasts. The airline’s outlook for 2026 failed to impress investors, sending the stock down sharply as concerns mounted over future demand and operating costs.
Credit card companies showed signs of stabilizing after a rough previous session. Shares of Synchrony Financial, Capital One, and American Express ticked slightly higher after comments from President Donald Trump about potentially capping credit card interest rates triggered earlier selling pressure.
The spotlight later in the day shifted to inflation data, with economists expecting consumer prices to rise about 2.6% year-over-year in December. Inflation has remained above the Federal Reserve’s long-term target, complicating decisions around future rate cuts. While the Fed reduced rates multiple times toward the end of last year, policymakers remain cautious about easing too aggressively and reigniting price pressures.
Political tensions added another layer of uncertainty. A public dispute between Trump and Federal Reserve Chair Jerome Powell intensified after legal scrutiny involving the Fed’s building renovations. Powell dismissed the controversy as an attempt to weaken the central bank’s independence, while the White House clarified that the president did not order the investigation.
Overseas markets delivered mixed signals. European stocks traded slightly lower, with Germany’s DAX and France’s CAC 40 posting modest declines, while London’s FTSE 100 remained largely flat.
Asia, however, showed strong momentum, led by a powerful rally in Japan. Tokyo’s Nikkei surged to a fresh record, boosted by gains in technology and semiconductor-related shares. Major chip equipment and electronics firms recorded notable jumps, reflecting continued optimism around global tech demand.
Currency markets also drew attention as the U.S. dollar strengthened against the Japanese yen, supported by expectations of higher government spending under Japan’s new leadership. Meanwhile, Hong Kong stocks advanced, with a standout debut from a Chinese semiconductor company that surged sharply on its first trading day. South Korea’s market also hit a record close, while Australia and Taiwan posted moderate gains. Indian equities edged slightly lower.
In commodities, oil prices climbed as both U.S. benchmark crude and Brent crude recorded solid gains, suggesting renewed confidence in global energy demand.
Overall, markets remain in wait-and-see mode. With earnings season just beginning and inflation data on deck, investors are bracing for potential volatility as economic signals shape the next phase of market direction.