Stock market update: Futures for the Dow, S&P 500, and Nasdaq decline as investors respond to DOJ probe involving Powell

US Stock Futures Retreat as Investors Await Key Earnings and Inflation Data

Futures for major US stock indexes declined on Sunday evening, following a strong opening week for the year. Wall Street is preparing for a busy stretch, with quarterly results from leading banks and fresh inflation figures on the horizon.

Dow Jones Industrial Average futures dropped by 0.4%, S&P 500 futures slipped 0.5%, and Nasdaq 100 futures fell 0.7%.

These declines come after a week in which stocks surged to new all-time highs. On Friday, both the S&P 500 and the Dow set fresh records, with the S&P 500 gaining over 1% for the week. The Dow and Nasdaq Composite posted even larger increases of 2.3% and 1.9%, respectively.

Markets Eye Upcoming Inflation Report

Investors are closely watching for the latest consumer inflation data, scheduled for release on Tuesday. This follows the December jobs report, which indicated that the labor market continues to cool gradually, without signs of a sharp downturn.

Together, these economic updates have strengthened the belief that the Federal Reserve will keep interest rates steady for now. According to the CME FedWatch Tool, there is a 95% chance that rates will remain unchanged.

Geopolitical Tensions Add Uncertainty

On the geopolitical front, President Trump is reportedly considering new measures regarding Iran and is increasing pressure on Cuba over oil shipments from Venezuela. Additionally, Trump recently revived debate over Greenland, suggesting the US could seek control of the Danish territory regardless of Denmark’s stance.

Focus Shifts to Earnings Season

Attention is now turning to the first major market drivers of 2026: corporate earnings and inflation data. Several of the nation’s largest banks are set to announce their results in the coming days, including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley.

Additionally, Taiwan Semiconductor, a leading chipmaker, will report earnings on Thursday. The company’s revenue outlook has improved by 20% compared to last year, fueled by robust demand for advanced chips used in artificial intelligence data centers.