U.S. stock futures held steady on Monday evening as Wall Street prepared for a dense calendar of third-quarter bank earnings and September inflation reports. Major financial institutions including JPMorgan Chase, Goldman Sachs, and Citigroup are scheduled to report quarterly results on Tuesday, setting the tone for the market.
S&P 500 futures edged up 0.12% on Sunday night, while Nasdaq 100 futures rose 0.24%, according to data reported by CNBC. Wall Street enters the week following a winning week for the major market averages.
Six Major Lenders Report Third-Quarter Earnings
The third-quarter earnings season enters a busy stretch as six of the nation’s largest lenders open their books over a two-day span. JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo report third-quarter results on Tuesday before the opening bell, with Bank of America and Morgan Stanley following on Wednesday.
Expectations remain high. As of Friday’s market close before these releases, the five major banks have lost roughly $270 billion in market capitalization as the financial sector has faced market pressures.
Options markets are anticipating relatively contained share price reactions following the upcoming releases. Projected share price fluctuations for these prominent institutions are 3.65% for JPMorgan Chase, 3.87% for Bank of America, 4.15% for Citigroup, 4.27% for Goldman Sachs, 4.44% for Morgan Stanley, and 5.00% for Wells Fargo. By contrast, the widest expected swings for the week are concentrated in smaller regional banking names.
September Consumer and Producer Price Indexes Awaiting Release
Macroeconomic data will arrive alongside corporate earnings, led by the September Consumer Price Index report on Wednesday and the Producer Price Index on Thursday.
These inflation releases carry importance as the Federal Reserve weighs its next policy steps. The central bank raised its benchmark interest rate to a range of 3.75% to 4.00% in a unanimous 12-0 vote on September 16, marking its first rate increase since July 2023. While markets currently price in additional moves cautiously, incoming price pressures could alter expectations for the upcoming October 27–28 policy meeting.
Geopolitical Tensions and Treasury Yields Pressure Markets
Financial markets face an unusual rate and geopolitical backdrop as the reporting week begins. The U.S. 10-year Treasury yield recently breached levels not seen since 2002, trading around 5.3%, while the 30-year yield has approached 5.7% and Brent crude futures held above $104 a barrel. According to Finance Media Holding CEO and Founder Oleg Parashchak, this worsening mood stems from questions regarding the capacity of American lenders to absorb elevated funding expenses alongside the capability of their revenue expansion to counteract costlier borrowing.
“Can this company withstand what’s happening? Pass along, continue to grow margins, and the future is going to be better than the most recent past.”
Brian Leonard, portfolio manager of Keeley Gabelli Small Cap Dividend Fund
The central bank last raised its benchmark interest rate to a range of 3.75% to 4.00% in a unanimous 12-0 vote on September 16, marking its first rate increase since July 2023.