March S&P 500 E-Mini futures are down 0.08% following JPMorgan Chase’s earnings report. JPM stock rose 0.5% after strong Q4 results. Wall Street indexes closed higher, with Western Digital and Seagate leading gains. Walmart and DexCom also saw increases. Credit card and bank stocks fell after Trump proposed a 10% cap on credit card interest rates.

New York Fed President John Williams stated interest rates are positioned well to stabilize the labor market and return inflation to the 2% target. U.S. rate futures show a 95.0% chance of no rate change at the January FOMC meeting. President Trump threatened a 25% tariff on countries doing business with Iran.

A group of central banks expressed support for Fed Chair Jerome Powell, emphasizing the importance of central bank independence. Today, focus is on the U.S. consumer inflation report. Economists predict a 2.7% y/y CPI for December. ADSS’ Neal Keane expects no change in Fed policy despite the report’s influence on market expectations.

A survey by 22V Research shows investor expectations for a “risk-on” market reaction to the CPI report. U.S. New Home Sales data for October will also be released today. Market participants will analyze comments from St. Louis Fed President Alberto Musalem and Richmond Fed President Tom Barkin. The yield on the 10-year U.S. Treasury note is at 4.197%.

The Euro Stoxx 50 Index is down 0.09% today as investors await U.S. inflation data. Technology and bank stocks performed well on Tuesday, while Sika AG slid after cutting earnings margin guidance. Geopolitical risks and concerns about Fed independence continue to be monitored. Asian markets closed mixed, with China’s Shanghai Composite down 0.64% and Japan’s Nikkei 225 up 3.10%.

Japan’s Nikkei 225 hit a record high amid speculation of a snap election. Prime Minister Sanae Takaichi may dissolve parliament’s lower house, boosting markets. Automaker stocks led gains as the yen weakened. Japan’s current account surplus widened in November. The Nikkei Volatility Index closed up 9.40% to 28.85. Pre-market U.S. stock movers include Arm, Synopsys, UPS, JPMorgan Chase, Intel, and AMD. Today’s U.S. earnings spotlight features JPMorgan, Bank of New York, Delta Air Lines, and more.

Read more at Yahoo Finance: S&P Futures Muted as Investors Weigh JPMorgan Earnings, U.S. Inflation Data in Focus