Wall Street’s downward trend persisted on Wednesday as investors absorbed a series of bank earnings reports and anticipated new data on inflation and the housing market. Futures for the Dow Jones Industrial Average saw a slight decrease of 0.2% ahead of market opening, with S&P 500 futures dropping 0.3% and Nasdaq futures off by 0.5%.
Wells Fargo’s shares slipped by 1.7% following the bank’s fourth-quarter revenue that fell short of expectations, coupled with reduced profits due to severance payouts. Conversely, Bank of America experienced a slight uptick of less than 1% as its profit and revenue figures exceeded forecasts.
Notably, Huntington Ingalls Industries saw an increase of 3% after securing a significant contract with the U.S. Department of Defense valued at up to $151 billion.
Later in the day, the government is set to release inflation data at the wholesale level. This follows Tuesday’s consumer inflation report, which was largely in line with economists’ predictions. The results strengthened expectations that the Federal Reserve might consider cutting its main interest rate at least twice in 2026 to support the job market.
Additionally, a report from the National Association of Realtors is expected to detail existing home sales from December.
In a related development, President Donald Trump announced a plan to impose a 25% tax on imports from nations engaged in trade with Iran, amidst growing unrest within the country where protest-related fatalities have surpassed 2,500, based on activist reports. These sanctions may further strain Iran’s access to foreign goods, potentially escalating tensions as the nation grapples with inflation exceeding 40%. However, these tariffs could also inflate prices for American consumers on imports from Iran’s trading partners.
In overseas markets, Europe’s midday response was mixed; France’s CAC 40 remained stable, German DAX fell by 0.3%, and Britain’s FTSE 100 rose by 0.3%. Meanwhile, Asian markets showed a more optimistic outlook, with Japan’s Nikkei 225 soaring 1.5% amid speculation of upcoming general elections likely called by Prime Minister Sanae Takaichi. Takaichi’s recent meeting with South Korean President Lee Jae Myung highlighted commitments to collaborate on economic and security matters, with South Korea’s Kospi climbing 0.7%.
Chinese markets displayed volatility, as Hong Kong’s Hang Seng index gained 0.6% but the Shanghai Composite dropped 0.3%. Notably, China’s trade surplus reached a historic $1.2 trillion in 2025, marking a 20% increase from the previous year, despite facing increasing tariffs under President Trump.
Australia’s S&P/ASX 200 made a modest gain of 0.1%, while Taiwan’s Taiex rose by 0.8%. Conversely, India’s Sensex experienced a slight decline of 0.5%.
In the energy sector, benchmark U.S. crude prices rose by 36 cents to $61.51 per barrel, and Brent crude increased by 44 cents to $65.91 per barrel.