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Investing.com - U.S. stock futures hover just above the flatline, with markets gearing up for a busy day that will feature key bank earnings and a fresh look at inflation. Wall Street’s lending giants are anticipated to unveil stronger returns fueled in part by a widely resilient economic backdrop. Consumer prices, meanwhile, are seen increasing at a faster rate in June. Elsewhere, China’s economy grows marginally more than expected in the second quarter, while Nvidia says it will soon be able to resume sales of its H20 AI chip in China.
1. Futures steady
U.S. stock futures inched mostly higher on Tuesday, as investors awaited crucial earnings from major banks and look ahead to the release of monthly inflation data.
By 03:35 ET (07:35 GMT), the Dow futures contract was broadly unchanged, S&P 500 futures had edged up by 16 points, or 0.3%, and Nasdaq 100 futures had gained 99 points, or 0.4%.
The main averages on Wall Street ticked up in the prior session, as a slate of artificial intelligence-related headlines helped to soothe worries over fresh U.S. threats of punishing tariffs on Europe and Mexico. Markets took note of a social media post from Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg, who said the Facebook-owner plans to spend "hundreds of billions" of dollars on AI computing power, while Bloomberg News reported that President Donald Trump is due to unveil a $70 billion investment focused on AI and energy.
Traders are now keeping tabs on a stream of impending quarterly earnings, which could provide a glimpse into how companies see returns evolving in the coming months against a backdrop of rising international trade tensions. Analysts at Vital Knowledge noted that the initial trickle of figures from groups like Delta Air Lines (NYSE:DAL) and Levi Strauss (NYSE:LEVI) have been "encouraging," but flagged that four European chemical firms have slashed their guidance.
2. Bank earnings loom large
Attention is set to shift to Wall Street, where a host of big U.S. lenders are expected to report before the opening bell.
JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC) are among the banks slated to open their books, as well as asset management titan BlackRock (NYSE:BLK).
These names -- which often mark the unofficial beginning to the three-month reporting period and have been viewed as bellwethers for the wider business environment -- are projected to deliver stronger profits thanks in large part to solid trading activity and a muted recovery in investment banking.
Most of the large lenders are tipped to post a low-to-mid single digit percentage increase in net interest income (NII), according to Reuters. NII is a closely-monitored gauge of what a bank earns in loans versus what it pays out for deposits.
During the second quarter of 2025, data has suggested that the U.S. economy remained resilient despite a series of headwinds, including the threat of Trump’s punishing tariff agenda and a brief flare-up of new violence in the Middle East. Inflation has stayed relatively tepid and labor demand has been largely stable -- yet economists warn that, with Trump’s aggressive "reciprocal" tariffs potentially set to be implemented in early August, storm clouds are still ahead.
3. CPI ahead
Beyond earnings, a new test of price pressures in the U.S. is on today’s docket.
Economists predict that the consumer price index for the twelve months to June will come in at 2.6%, accelerating slightly from 2.4% in May. Month-on-month, the number is set to come in at 0.3%, faster than a previous reading of 0.1%.
So-called "core" CPI, which strips out volatile items like food and fuel, is seen at 3.0% year-over-year and 0.3% on a monthly basis.
Writing in a note, analysts at ING said markets have not seemed "fazed" by Trump’s recent escalation of his global trade war, which they argued reflects a "continued wait-and-see approach" to the levies.
"Markets will likely be more interested in the impact from Trump’s trade tantrums on the underlying economic data," the analysts wrote. However, they said 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.
4. China’s resilient economy
China’s economy displayed its own signs of resilience in the first six months of 2025, leaving its full-year official growth target intact despite Trump’s tariff attacks.
The world’s second-largest economy grew slightly more than expected in the April-June period, gross domestic product data showed on Tuesday.
GDP grew 5.2% year-on-year in the three months to June 30, more than expectations of 5.1% but declining slightly from the 5.4% seen in the prior quarter. Quarter-on-quarter, GDP rose 1.1%, beating expectations of 0.9%.
This brought China’s GDP in the first six months of 2025 to 5.3%, in line with expectations and above the government’s 5% annual target.
Despite bouts of intensifying trade tensions, the economic impact from U.S. levies was limited, given that China had to contend with only a month of steep duties before both countries agreed to deescalate in mid-May. This helped Chinese export growth remain robust in May and June, with demand from other major markets solid.
Washington and Beijing agreed to further deescalate their trade conflict in June.
But analysts have retained some caution around China’s economy, as it struggles with weak domestic demand and a protracted property crisis that could force Beijing to roll out more stimulus measures.
5. Nvidia to resume H20 sales in China
Nvidia Corporation (NASDAQ:NVDA) said on Monday that it will resume selling its H20 processor in China “soon,” as trade relations improve between Washington and Beijing, and after CEO Jensen Huang met with officials from both sides.
The AI-darling also announced a new graphical processing unit for China which it claimed was ideal for artificial intelligence smart factories and logistics.
Shares of the firm rose 3.6% in extended hours trading.
Nvidia is “filing applications to sell" its H20 again and "the U.S. government has assured [...] that licenses will be granted,” the world’s most valuable listed company said in a statement.
The move comes after Washington lifted several restrictions on the export of chip technology to China, having recently allowed chip design majors including Synopsys (NASDAQ:SNPS) to resume sales in the country.