US stock futures remained mostly unchanged Tuesday evening, after a decline that caused the Dow and S&P 500 to fall from their record peaks.
Dow futures (YM=F) decreased by approximately 0.1%, while S&P 500 (ES=F) and Nasdaq 100 (NQ=F) futures were slightly below the flatline, following a session where the Dow (^DJI) primarily contributed to the drop in stocks.
In a week characterized by major banking earnings, Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) are scheduled to announce their earnings before the market opens on Wednesday.
Investors will also analyze new inflation statistics as December's producer price index is published. These reports follow JPMorgan Chase (JPM), which kicked off earnings season on Tuesday with a disappointing release, leading to a decline in its stock.
Investors are also focusing on the Supreme Court, which has not yet made a ruling on a notable challenge regarding President Trump’s authority over tariffs.
The initial potential date for a decision passed last week without any alterations to the current situation, but the court is set to release its next opinions on Wednesday.
In a post on social media this Monday, Trump presented the case as a crucial issue of national security, stating, "If the Supreme Court makes a ruling against the United States of America on this significant National Security matter, WE’RE IN TROUBLE!"
At the same time, Trump intensified his criticism of Federal Reserve Chair Jerome Powell on Tuesday, heightening worries about the central bank's autonomy as the Justice Department launched a criminal inquiry into the Fed chair.
This legal action has sparked controversy, with Trump encountering resistance from business executives and even some members of his own party as concerns arise regarding the Fed's independence.
Financial institutions are also experiencing pressure from the presidency due to Trump's recent advocacy for a one-year limit of 10% on credit card interest rates.
On Tuesday, shares of Visa (V) and Mastercard (MA) dipped as investors considered the possible effects on payment networks.
Silver (SI=F) reached an all-time high, while gold (GC=F) also increased as disappointing US inflation figures bolstered the argument for additional interest rate cuts, amidst ongoing geopolitical tensions.
The white metal surged by up to 2.5% to hit $89.1644 an ounce, whereas gold approached its historic peak. December's underlying inflation was lower than anticipated, although economists indicated that the data was artificially subdued due to the prolonged government shutdown that occurred late last year.
Precious metals have begun 2026 on a positive note, following significant gains last year, as concerns about a potential criminal indictment against Federal Reserve Chair Jerome Powell reignite fears regarding the central bank’s autonomy. Global central bankers have united in their support for Powell, and JPMorgan Chase & Co. CEO Jamie Dimon remarked that political interference could have unintended consequences.
Netflix Inc. (NFLX) is currently negotiating updated terms for its acquisition of Warner Bros. Discovery Inc. (WBD) and has considered presenting a cash-only proposal for the company's studios and streaming operations, according to sources close to the talks.
These modifications aim to accelerate a sale that will require several months to finalize and has encountered resistance from both politicians and competing bidder Paramount Skydance Corp. Institutional investors have shown mixed levels of support.
According to the initial agreement, shareholders of Warner Bros. were expected to get $23.25 in cash along with $4.50 in Netflix stock, with specific adjustments applicable if Netflix shares dip below $97.91.
Since Netflix started its acquisition of Warner Bros. in October, the value of its shares has dropped by roughly 25%. On Tuesday, they were traded at a low of $89.07 in New York.
