Futures tied to major U.S. equity benchmarks hovered slightly below flat levels as investors waited for another round of earnings from leading American banks. China reported a record trade surplus for 2025, highlighting efforts to redirect exports away from the U.S. last year. Gold climbed to a fresh all-time high on expectations of future U.S. rate cuts and ongoing geopolitical strains, while oil prices eased after recent gains.

Futures dip

U.S. stock futures edged lower on Wednesday ahead of key earnings releases from Wall Street heavyweights.

By 02:49 ET, Dow futures were down 133 points, or 0.3%, S&P 500 futures slipped 14 points, or 0.2%, and Nasdaq 100 futures fell 43 points, or 0.2%.

The main indices declined on Tuesday as markets assessed data showing U.S. consumer inflation remained steady in December. The figures reinforced expectations that the Federal Reserve will keep interest rates unchanged at its upcoming policy meeting later this month.

Meanwhile, JPMorgan Chase (NYSE:JPM), the largest U.S. bank, reported a drop in fourth-quarter profit, weighed down by provisions linked to its takeover of a credit card partnership with Apple from Goldman Sachs. The bank also warned that President Donald Trump’s proposed cap on credit card interest rates could hurt industry returns and consumers, pressuring the broader financial sector.

JPMorgan shares fell about 4.2%, even though adjusted quarterly income beat forecasts, largely due to strong trading performance.

More bank earnings ahead

Several major banks are set to report later on Wednesday, including Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C).

Bank earnings typically mark the start of the quarterly reporting season and are closely watched as indicators of market and economic sentiment at the beginning of 2026.

Throughout last year, volatile equity markets — influenced by policy signals from the White House and concerns over a potential bubble in artificial intelligence stocks — supported trading revenues across the sector. Investment banking fees also benefited from increased merger and acquisition activity.

JPMorgan CEO Jamie Dimon said on Tuesday that the broader U.S. economy has remained resilient and could continue to do so, supported by fiscal stimulus, deregulation and recent Fed policy.

Analysts are also likely to focus on any commentary regarding the independence of the U.S. central bank, which has come under scrutiny since the Trump administration launched a criminal investigation into Fed Chair Jerome Powell. Powell has said the move was intended to influence interest rate decisions.

Dimon voiced support for an independent Fed, warning that anything that “chips away” at its ability to set policy free from political pressure “is not a good idea.”

China’s record trade surplus

China posted a record trade surplus of $1.2 trillion in 2025, reflecting a strategic shift in exports away from the United States toward other regions.

Facing an aggressive U.S. tariff agenda under Trump, Beijing redirected exports to markets such as the European Union, Southeast Asia, Latin America and Africa.

Figures from China’s General Administration of Customs showed the annual surplus — the gap between exports and imports — jumped 20% compared with 2024.

In December alone, the surplus reached $114.14 billion, the third-highest monthly figure on record. The two largest monthly surpluses were recorded in January and June last year, underscoring efforts by Chinese manufacturers to avoid steep U.S. tariffs.

At the same time, the headline surplus was boosted by weak imports amid a sluggish domestic economy. Chinese policymakers remain under pressure to introduce measures to support growth as consumer spending stays subdued and the housing downturn persists.

Gold hits fresh record

Gold prices surged to new all-time highs as softer U.S. inflation data reinforced expectations for Fed rate cuts later this year and geopolitical tensions in Iran lifted safe-haven demand.

Spot gold rose more than 1% to a record $4,640.13 per ounce by 01:56 ET (06:56 GMT), surpassing the previous peak of $4,634.33. U.S. gold futures for March gained 1% to $4,643.10 an ounce.

Core U.S. consumer prices, which exclude volatile food and energy components, rose 0.2% month on month and 2.6% year on year in December, coming in below forecasts and strengthening the case for future rate reductions. Markets are now pricing in roughly two rate cuts in 2026.

“Two Fed rate cuts seem perfectly achievable with the risks skewed towards a third due to the cooling jobs story,” ING analysts said in a recent note. Lower interest rates typically support non-yielding assets like gold by reducing their opportunity cost.

Geopolitical risks remained elevated, with Iran facing intensifying anti-government protests that have reportedly resulted in around 2,000 deaths, fuelling concerns about broader instability in the Middle East. Questions over Fed independence following the investigation into Powell also lent support to bullion.

Oil prices ease

Oil prices slipped on Wednesday, giving back some of the previous session’s gains, as Venezuela resumed exports and U.S. crude inventories increased, even as events in Iran stayed in focus.

Brent futures fell 0.8% to $64.96 a barrel, while U.S. West Texas Intermediate crude dropped 0.8% to $60.69 a barrel.

Both benchmarks jumped more than 2.5% on Tuesday, pushing Brent to an 11-week high and WTI to a 10-week peak, extending a four-session rally.

U.S. crude inventories rose by 5.23 million barrels in the week ended January 9, according to data from the American Petroleum Institute released on Tuesday. Official inventory figures from the U.S. Energy Information Administration are due later on Wednesday.

Adding to supply dynamics, OPEC member Venezuela has resumed crude exports under a deal between Caracas and Washington following the U.S. capture of Venezuelan President Nicolas Maduro. However, escalating protests in Iran have heightened fears of potential supply disruptions from the fourth-largest producer in OPEC.

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This article was written by the editorial team at InvestorsHub/ADVFN and is provided for informational purposes only. In some cases, editorial staff may use artificial intelligence–based tools to assist in the research, drafting, or editing of content, under human review and oversight. This article does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. The views expressed are based on publicly available information believed to be reliable at the time of publication, but accuracy or completeness is not guaranteed. Readers should conduct their own independent research and consult a qualified financial professional before making any investment decisions.