U.S. equity futures saw a decline on Tuesday, following a positive market close the previous day. Key benchmark indices, including the S&P 500 and Dow Jones, showed downward trends in pre-market trading, setting a cautious tone for the day's session. This market movement occurred as investors keenly awaited the release of the December Consumer Price Index (CPI) data, a crucial indicator for inflation and future monetary policy. Despite the overall dip, specific corporate news from companies like Alphabet, Xpeng, Five9, JPMorgan Chase, and Revvity presented varied performances, highlighting company-specific catalysts within the broader economic landscape.
Market participants are largely projecting the annual inflation rate for December to stabilize around 2.7%, with a monthly increase of 0.3%. These figures are not expected to cause widespread market anxiety, suggesting a degree of embedded expectation among investors. Concurrently, the 10-year Treasury bond yield stood at 4.19%, and the two-year bond yield reached 3.55%. According to the CME Group's FedWatch tool, there is a substantial 95% probability that the Federal Reserve will maintain the current interest rates in January, signaling stability in monetary policy in the immediate future.
Several prominent companies experienced notable movements. Alphabet Inc. (GOOG, GOOGL) saw an increase of 0.68% in its stock value, propelled by reaching a $4 trillion market capitalization amidst the ongoing artificial intelligence (AI) boom. This surge was further supported by Apple Inc.'s confirmation that it would integrate Google Gemini, indicating a significant enhancement for Siri. Conversely, Xpeng Inc. ADR (XPEV) experienced a 2.63% drop, despite announcing plans to establish independent supply chain teams in Europe and ASEAN by 2026, aiming to bolster its overseas operations. Five9 Inc. (FIVN) shares rose by 0.36% following the expansion of its collaboration with Google Cloud for enterprise customer experience (CX) AI solutions. JPMorgan Chase & Co. (JPM) recorded a 0.31% increase as analysts anticipated the bank to release strong fourth-quarter earnings, with expectations of $4.92 per share on revenues of $46.02 billion. Lastly, Revvity Inc. (RVTY) shares climbed by 4.92% after the company provided preliminary earnings projections for the fourth quarter of 2025, forecasting approximately $772 million in revenue, which represents a 6% reported growth and 4% organic growth year-over-year.
In the previous trading session, the market witnessed a generally positive trend, predominantly led by the Consumer Staples sector. However, the Financials and Energy sectors were the only ones to conclude the day with losses. Looking ahead, investors are keenly awaiting several key economic data releases on Tuesday, including the December NFIB optimism index, the December headline and core U.S. CPI data, and October's U.S. new home sales data. Additionally, speeches from St. Louis Fed President Alberto Musalem and Richmond Fed President Tom Barkin are scheduled, which could provide further insights into economic perspectives. The December U.S. budget deficit report will also be released, offering a snapshot of the nation's fiscal health.
On the commodities front, crude oil futures were trading lower, decreasing by 2.19% to approximately $60.62 per barrel. Gold Spot US Dollar experienced a slight dip of 0.22%, hovering around $4,586.67 per ounce, after recently reaching a record high of $4,630.47 per ounce. The U.S. Dollar Index spot increased by 0.07% to the 98.9330 level. In the cryptocurrency market, Bitcoin (BTC) showed resilience, trading 1.57% higher at $92,154.63 per coin. Global equity markets presented a mixed picture, with Asian markets closing divergently. India’s Nifty 50 and China’s CSI 300 indices declined, while Australia's ASX 200, Japan's Nikkei 225, Hong Kong's Hang Seng, and South Korea's Kospi indices all registered gains. European markets also displayed mixed results in early trading.