U.S. stock futures rise ahead of bank earnings and CPI data

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US futures rise on earnings, CPI

Highlights

Bank of America falls 1.5% premarket after a $1.21 billion regulatory fine, while Morgan Stanley edges up 0.7% ahead of earnings releases.
Dow E-minis rise 0.45%, S&P 500 E-minis gain 0.21%, with investors awaiting CPI data and pricing in a near 22% chance of a Fed rate hike next week.
Brent crude holds above $100 as oil prices rise following vessel attacks in the Strait of Hormuz; Liquidia surges 49.9% on settlement ensuring access to Yutrepia.

Bank earnings and inflation set market tone

As reported by Reuters, Bank of America, Morgan Stanley, BlackRock and State Street are set to report before markets open after a mixed round of earnings from Wall Street lenders a day earlier.

Bank of America shares fall 1.5% in premarket trading after the company discloses a $1.21 billion regulatory fine that could weigh on third-quarter results. Morgan Stanley shares edge 0.7% higher.

At 05:41 a.m. ET, Dow E-minis are up 234 points, or 0.45%, and S&P 500 E-minis are up 16.25 points, or 0.21%. Nasdaq 100 E-minis are down 9 points, or 0.03%.

Market participants are also awaiting U.S. consumer price index data for signals on the Federal Reserve's interest-rate path. Economists polled by Reuters estimate headline inflation accelerated to an annual 3.6% in September, with core CPI rising 0.2% on a monthly basis.

New York Fed President John Williams says the Fed may need to raise its policy rate once more this year to slow inflation, but he sees no need for hikes in 2027. Remarks from Richmond Fed President Tom Barkin and the Fed's Beige Book report on regional economic conditions are also due later in the day.

Ahead of the CPI release, investors price in a near 22% chance of a quarter-point U.S. rate hike next week, according to the CME FedWatch Tool.

Oil prices and chip competition shape sector moves

Oil prices edge higher, with Brent crude holding above the $100-a-barrel mark after two vessels are struck in the Strait of Hormuz and Iranian officials tell Reuters they are deploying new tactics to target ships.

Chip stocks trade mixed after a sharp pullback earlier this week, triggered by reports of progress in chip design by China's CXMT that fuel concerns about stronger competition. Intel and Micron shares fall 1.1% and 1.3%, respectively, while Nvidia gains 0.2%.

All of the Magnificent Seven stocks rise, with Alphabet up 0.7%, while Meta and Amazon.com are marginally higher.

Among individual movers, Liquidia jumps 49.9% after the drugmaker says it settles all six pending lawsuits with United Therapeutics, ensuring uninterrupted access to Yutrepia, a drug used to treat patients with a form of pulmonary hypertension.

Our earlier coverage examined how U.S. Treasury yields eased as investors positioned cautiously ahead of the September CPI report, a key input for expectations around the Fed’s next rate decision. We noted that with the PCE inflation gauge arriving only after the upcoming FOMC meeting, the CPI release carries extra weight for rate-hike pricing and broader risk sentiment.

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