As the end of the trading week draws near, investors in the US are poised for a relatively subdued opening. Stock futures point to a slight drop, following yesterday’s gains, with several major banks due to release their earnings reports, signaling the start of the new financial reporting season.
The Dow Jones futures contract was down 55 points, representing a decrease of 0.2%. Similarly, the S&P 500 futures traded 6 points lower, or a 0.2% decline, while Nasdaq 100 futures dipped 45 points, or 0.4%.
In the previous session, however, all the main indices closed higher, largely fueled by data that suggests inflation is cooling. This data has increased the chances of the Federal Reserve ending its rate-hiking cycle soon, with a final increase in May expected.
The Dow Jones Industrial Average closed more than 380 points higher or up 1.1%, while the S&P 500 rose by 1.3%, and the tech-heavy Nasdaq Composite surged 2%.
Nevertheless, investors’ attention today will be focused on the start of the new quarterly earnings season, with Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and JPMorgan Chase (NYSE:JPM) expected to announce their earnings. Investors will be keen to hear what these banking officials say about the economic outlook, consumer credit quality, and business activity, particularly after Fed policymakers voiced concerns about the sector and the possibility of a mild recession later this year.