Stock futures slip after Wednesday’s session as Wall Street awaits bank earnings

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Stock futures slipped Wednesday night as traders look ahead to earnings from major U.S. banks.

Dow Jones Industrial Average futures shed 117 points, or 0.38%. S&P 500 and Nasdaq 100 futures were down 0.41% and 0.47%, respectively.

Stocks slipped during Wednesday’s session after June inflation data came in hotter than expected, hitting its highest level in since 1981 and stoking fears that the Federal Reserve will have to hike interest rates more aggressively in the coming months to bring down price increases.

The consumer price index rose 9.1% on the year in June, higher than economist estimates of an 8.8% year-over-year increase. Core CPI, which excludes volatile prices of food and energy, was 5.9%, also ahead of the 5.7% estimate.

In addition, the Beige Book, released Wednesday by the Fed showed worries of an upcoming recession amid high inflation.

The CPI report also impacted treasuries, sending the 2-year Treasury yield up nine basis points to about 3.138% while the yield on the 10-year Treasury fell about 4 basis points to 2.919. An inversion of the two is a popular signal of a recession.

If the Fed says, “everything’s on the table, all of a sudden you have to start pricing in a recession,” said Dan Nathan, principal of RiskReversal Advisors, during CNBC’s “Fast Money.”

Earnings season continues Thursday with JPMorgan Chase and Morgan Stanley scheduled to report before the bell on Thursday.

Weekly jobless claims and the June producer price index report, which measures prices paid to producers of goods and services, will also be released Thursday. Both reports will give further insight into the economy.

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