Stock Futures Fall Amid Inflation Fears, Bank Earnings

Stock markets remain jittery amid inflation concerns, ongoing trade tensions, and key earnings reports from major banks like Goldman Sachs and Bank of America. Despite cooler-than-expected consumer price data, inflation fears persist, exacerbated by U.S. tariffs that are beginning to push prices higher, with inflation hitting 2.7% and some economists predicting further increases. Wall Street is also apprehensive that political pressures, especially from the Trump administration, could undermine the Federal Reserve's credibility, while President Trump denies any imminent plans to fire Fed Chair Jerome Powell. Internationally, the eurozone and China are coping with the impact of tariffs, with the eurozone facing increased competition for bond buyers and China finding it difficult to maintain its strong economic momentum. Meanwhile, central banks like the Bank of England and Bank Indonesia are weighing rate cuts as labor markets cool and inflation data diverge. Amid these uncertainties, traders appear to be underestimating the potential volatility from inflation data, leaving markets vulnerable to surprises.