U.S. stock futures hovered just above unchanged levels Tuesday as investors prepared for a busy day featuring key bank earnings reports and fresh inflation data. Wall Street’s major lenders are expected to deliver solid returns, supported by a generally resilient economy. Meanwhile, consumer prices are anticipated to rise at a quicker pace in June. On the international front, China’s economy grew slightly more than expected in Q2, and Nvidia announced plans to soon resume sales of its H20 AI chip in China.
Futures Show Modest Gains
On Tuesday, U.S. stock futures inched mostly upward as market participants awaited crucial quarterly earnings from leading banks and the release of monthly inflation figures. By 03:35 ET, Dow futures remained largely flat, S&P 500 futures were up 16 points (0.3%), and Nasdaq 100 futures gained 99 points (0.4%).
Wall Street saw modest gains in the prior session, buoyed by a series of AI-related headlines easing concerns about new U.S. tariff threats on Europe and Mexico. Meta Platforms CEO Mark Zuckerberg posted that Facebook plans to invest “hundreds of billions” in AI computing, while Bloomberg reported that President Trump will unveil a $70 billion AI and energy investment plan.
Traders are closely monitoring an array of upcoming earnings releases that could reveal how companies expect profits to evolve amid rising global trade tensions. Analysts at Vital Knowledge described early reports from companies like Delta Air Lines and Levi Strauss as “encouraging,” though noted that four European chemical firms have lowered their forecasts.
Focus on Bank Earnings
Attention now shifts to Wall Street, where several large U.S. banks are scheduled to report before the market opens. JPMorgan Chase, Citigroup, Wells Fargo, and asset management giant BlackRock are set to share results. These firms often signal the start of the quarterly reporting season and serve as barometers for the broader economy.
Analysts expect most of the major banks to report low-to-mid single-digit percentage gains in net interest income (NII), a key measure of income from loans versus interest paid on deposits, according to Reuters.
Despite headwinds—including Trump’s aggressive tariff agenda and renewed Middle East tensions—the U.S. economy has shown resilience in Q2 2025. Inflation remains relatively subdued, and labor demand is stable. However, economists warn that Trump’s planned “reciprocal” tariffs, expected in early August, could cloud the outlook.
CPI Data in Focus
Beyond earnings, markets await fresh U.S. consumer price index data. Economists forecast a 2.6% year-over-year rise in June, up from 2.4% in May, with a 0.3% month-over-month increase, faster than the previous 0.1%. Core CPI, excluding volatile food and energy costs, is expected at 3.0% annually and 0.3% monthly.
ING analysts commented, “Markets will likely be more interested in the impact from Trump’s trade tantrums on the underlying economic data.” They added, “However, any interpretation of the numbers could be complicated by uncertainty around the knock-on effect of many businesses moving to lock in orders before Trump’s ‘Liberation Day’ tariff announcement in April.”
China’s Economic Resilience
China’s economy showed modest strength in the first half of 2025, maintaining its official growth target despite tariff pressures. Q2 GDP expanded 5.2% year-on-year, beating expectations of 5.1%, though slightly below Q1’s 5.4%. On a quarterly basis, GDP rose 1.1%, exceeding forecasts of 0.9%, bringing six-month growth to 5.3%, aligned with government goals.
Limited tariff impacts helped sustain strong Chinese export growth in May and June. Washington and Beijing agreed to ease trade tensions further in June. Yet analysts remain cautious, noting weak domestic demand and a prolonged property slump could require additional stimulus.
Nvidia to Restart H20 Chip Sales in China
Nvidia (NASDAQ:NVDA) announced Monday that it will resume selling its H20 AI processor in China “soon” as trade relations between the U.S. and China improve. This follows CEO Jensen Huang’s meetings with officials from both countries.
Nvidia also unveiled a new GPU designed for AI applications in smart factories and logistics in China. The company’s shares rose 3.6% in after-hours trading.
The firm said it is “filing applications to sell” the H20 again, with assurances from the U.S. government that “licenses will be granted.” This comes after Washington lifted some chip export restrictions, allowing companies like Synopsys to resume sales in China.
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