Wall Street futures pointed lower pre-bell Monday as traders adjusted their positions ahead of the crucial start of earnings season while considering the diminishing likelihood of rate cuts from major central banks. The S&P 500 futures experienced a 0.8% drop, Nasdaq futures declined by 1.2%, and the Dow Jones futures were off 0.3%.
On Wednesday, critical economic data will be released as Washington prepares to post the consumer price index (CPI) for December, a significant indicator likely to influence decisions at the upcoming Federal Reserve policy meeting. According to the insights from the CME Group FedWatch tool, there is an overwhelming 97.3% probability that the Federal Reserve opts to keep interest rates unchanged during the impending late January session.
In parallel developments, yields on 10-year US Treasuries surged, reaching approximately 4.80%, marking a peak not seen in a year. Financial giants such as JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup are set to unveil their earnings results before the opening bell on Wednesday, adding to the market's liquidity and volatility.
Asian markets reflected a downward trend overnight, as the likelihood of rate cuts from central banks in both Beijing and Washington receded. European markets mirrored this sentiment, showing negative trends around midday. The economic calendar, however, remains devoid of significant events on Monday.
In the premarket arena, Bitcoin was valued at $91,628.23, West Texas Intermediate crude oil enjoyed an uptick at $76.85, while 10-year US Treasuries yielded 4.79%. The price of spot gold was reported at $2,679 per ounce. Investors continue to keep a vigilant eye on market movements as the backdrop of earnings reports and macroeconomic indicators unfold..