Big Banks Earnings and December Inflation Data Dominate Market Sentiment

Barry Adams
13 Jan, 2026
New York City

Wall Street indexes faced another wave of selling in early trading, and investors awaited the release of the inflation report. 

The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite declined 0.3% amid high investor anxiety ahead of quarterly results from banks this week. 

JP Morgan Chase, Bank of America, Citigroup, Wells Fargo, PNC Financial, Goldman Sachs, and BlackRock are set to release their results later in the week.

The rebound in merger activities, sharp gains in financial markets, and easing of inflation are likely to support higher earnings at large banks. 

Global central bankers voiced their support for Fed Chair Jerome Powell, sending a strong signal to the White House to not interfere with the Fed's independence. 

"We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell," said central bank chiefs in a joint statement released Tuesday. 

"The independence of central banks is a cornerstone of price, financial, and economic stability in the interest of the citizens that we serve," the central bankers' statement noted. 

"It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability. 

Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him," heads of central banks stressed. 

The leaders of the European Union, the UK, Switzerland, Sweden, Norway, Denmark, Brazil, Korea, Canada, and Australia released a joint statement.

Consumer price inflation in December remained at 2.7%, and core inflation advanced to 2.7%, a report from the U.S. Bureau of Labor Statistics is expected to confirm. 

The inflation report is the first full-month view of price trends since the reopening of the federal government last fall. 

The 43-day federal government shutdown ended on November 12, disrupting the lives of hundreds of thousands of federal employees and delaying federal payments to contractors, suppliers, and states.  

 

U.S. Movers 

JPMorgan Chase increased 0.9% to $327.52, Citigroup added 0.4% to $118.15, PNC Financial Services gained 0.1% to $215.88, Bank of America inched higher 0.5% to $55.30, and Wells Fargo edged up 0.3% to $95.24.