U.S. stock futures were little changed Tuesday night as the release of September's consumer inflation report loomed.
S&P 500 futures and Nasdaq-100 futures dipped 0.03% and 0.1%, respectively, after the spot gauges dropped for a second straight session on Tuesday.
Bank of America shares declined over 2% in extended trading after the firm was hit with more than $1.2 billion in federal penalties, with regulators saying the bank failed to report more than $5 billion in "suspicious" transactions.
A drift downward in chip stocks weighed on the major averages, with the VanEck Semiconductor ETF (SMH) falling for a sixth straight session over growing fears of an AI spending bubble and rising anxieties around competition out of China.
A swath of big banks posted strong quarterly results, but shares ended the day lower, with Goldman Sachs and Citigroup falling. The market's reaction suggested businesses have a higher bar to clear during the third-quarter earnings season — especially in tech where semiconductors are expected to be the largest contributor to year-over-year earnings growth.
S&P 500 companies are expected to post a blended earnings growth rate of roughly 30%, while semiconductors and semiconductor equipment are set for growth of 130%, according to FactSet data.
"The business fundamentals are very strong. It's very hard to argue with the demand side of the story for chips," Marta Norton, chief investment strategist at Empower, told CNBC's "Closing Bell: Overtime." "I don't know if we necessarily question how good those business fundamentals are as much as we question how much valuation is left in the space."
Investors are awaiting the September reading of the U.S. consumer price index Wednesday morning. Economists polled by Dow Jones anticipate inflation to have risen by 3.6% on a year-over-year basis, up from 3.4% in the prior reading.
The results arrive as oil prices remain elevated and consumers pay more for gasoline, which is averaging at $4.34 a gallon, compared to $3.08 per gallon a year earlier, according to AAA. Last week President Donald Trump announced he would temporarily ease restrictions on Russian diesel fuel exports, but analysts don't believe the deal will do much to lower fuel prices for truckers and farmers.
Earnings season continues, with more big bank results from Bank of America and Morgan Stanley out Wednesday morning U.S. time. Dutch semiconductor company ASML also reports.
15 Min AgoWhat economists expect ahead of CPI report
The September reading of the consumer price index is set to release Wednesday morning.
Economists polled by Dow Jones anticipate inflation to have risen by 3.6% on a year-over-year basis, up from 3.4% in the prior reading.
— Sarah Min
35 Min AgoAsia markets set to open mixed as investors brace for key U.S. inflation report
Asia-Pacific markets were set for a mixed open Wednesday as investors awaited a key U.S. inflation report that could offer fresh clues on the Federal Reserve's interest rate outlook.
Futures for Hong Kong's Hang Seng index stood at 24,340, marginally lower than the index's last close of 24,345.22.
Australia's S&P/ASX 200 was down 0.52% in its first hour of trade.
Japan's Nikkei 225 was set to rise at open, with its Chicago and Osaka futures contracts last at 68,055 and 68,100 respectively, compared with the index's previous close of 67,777.52.
— Lee Ying Shan
2 Hours AgoBank of America hit with more than $1.2 billion in penalties
Bank of America was hit with more than $1.2 billion in federal penalties Tuesday after regulators said the nation's second-largest bank failed for years to report more than $5 billion in suspicious transactions and fix longstanding anti-money-laundering problems.
More than $1 billion of the unreported activity involved national security and other high-priority risks, including Chinese money-laundering networks and activity tied to the southwest border, Treasury said in a press release.
The action also lands less than a day before the bank reports quarterly earnings Wednesday morning.
— Luke Fountain, Kevin Breuninger
2 Hours AgoStocks moving in after hours trading
Check out the companies making headlines in extended trading.
- Bank of America — The bank stock dipped more than 2% in extended trading after the firm was hit with more than $1.2 billion in federal penalties, with regulators saying the bank failed to report more than $5 billion in suspicious transactions.
- GameStop — Shares gained nearly 3% after GameStop CEO and Chairman Ryan Cohen disclosed in a regulatory filing that they bought 844,000 shares.
— Sarah Min
2 Hours AgoStock futures open little changed
Stock futures opened near the flatline Tuesday night.
Dow Jones Industrial Average futures lost 17 points, or 0.03%. S&P 500 futures and Nasdaq 100 futures both dipped 0.01%.
— Sarah Min
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