Stock futures were falling early Wednesday as inflation fears kept markets under pressure despite cooler-than-expected consumer price index data and strong bank earnings.
There will be more of both this morning as Goldman Sachs, Bank of America, and Morgan Stanley all report results and the producer price index is released.
Futures on the Dow Jones Industrial Average fell 69 points, or 02%, ahead of the open, while S&P 500 futures dipped 0.2% and Nasdaq 100 futures were 0.3% lower. The tech-heavy Nasdaq Composite closed at a record high Tuesday, driven by Nvidia’s 4% gain.
However, the other two indexes fell despite cooler-than-expected inflation and robust earnings from some of the biggest U.S. banks.
Outside of the tech sector market weakness was broad–454 stocks in the S&P 500 fell and just 48 rose, according to Dow Jones Market Data.
The core consumer price index came in lower than expected in June but there were signs that tariffs are starting to have an impact.
The 0.2% gain in core goods inflation was the fastest one-month increase since February. The price of household appliances jumped 1.9%, which Deutsche Bank strategist Jim Reid noted was the biggest monthly price jump in records dating back to 1999.
“The fear is that as the tariff impact is more fully felt (with plenty more in the pipeline), those increases could become more widespread across the consumer basket,” Reid wrote in a note Wednesday.
Treasury yields rose Tuesday and continued to point higher Wednesday–the yield on the 10-year edged up to 4.491% early in the day.
