Stock futures fell Wednesday night as traders expect gains from major U.S. banks.
Dow Jones Industrial Average futures fell 117 points, or 0.38%. Futures S&P 500 and Nasdaq 100 were down 0.41% and 0.47%, respectively.
Shares fell during the session on Wednesday after June inflation data reached higher than expected, reaching its highest level since 1981 and fueling fears that the Federal Reserve will have to raise rates of interest more aggressively in the coming months to reduce rising prices.
The consumer price index rose 9.1% year-on-year in June, more than economists’ estimates of a year-on-year increase of 8.8%. The underlying CPI, which excludes volatile food and energy prices, was 5.9%, also ahead of the 5.7% estimate.
In addition, the Beige Book, released Wednesday by the Fed, showed concerns about an impending recession amid high inflation.
The CPI report also affected treasuries, causing the 2-year Treasury yield to rise nine basis points to 3.138%, while the 10-year Treasury yield fell about 4 basis points to 2,919. An investment of both is a popular sign of a recession.
If the Fed says, “Everything is on the table, you suddenly have to start setting prices in a recession,” Dan Nathan, director of RiskReversal Advisors, said during CNBC’s “Fast Money.”
The earnings season continues Thursday with JPMorgan Chase and Morgan Stanley scheduled to report ahead of Thursday’s bell.
Weekly unemployment claims and the June Producer Price Index report, which measures prices paid to producers of goods and services, will also be released on Thursday. Both reports will give a more detailed view of the economy.