S&P 500 and Nasdaq Futures Halt Near Record Highs Ahead of Major Earnings Reports

Futures tied to the S&P 500 and Nasdaq 100 paused near record levels on Friday as investors awaited second-quarter earnings results from major banks such as JPMorgan, Citigroup, and Wells Fargo. Analysts expect large lenders to set aside more funds for deteriorating loans, impacting their quarterly profits.

Futures tied to the S&P 500 and Nasdaq 100 indexes paused near record levels on Friday ahead of quarterly earnings results from major banks including JPMorgan, Citigroup, and Wells Fargo. Analysts expect large lenders to allocate more funds to cover deteriorating loans.

JPMorgan Chase, the largest U.S. lender, is anticipated to report a decline in quarterly profit. Shares of JPMorgan and Citigroup were marginally down ahead of the results. Investors are also looking beyond heavyweight tech names for strong profit growth to sustain the U.S. stock rally.

The Nasdaq saw a nearly 2% drop on Thursday following a surprise decrease in U.S. consumer prices, which bolstered expectations for a September interest rate cut. Traders now see an 86% chance of a rate cut, up from 72% a week ago, according to CME Group's FedWatch Tool. Tesla fell 1.4% as UBS downgraded the electric vehicle maker to 'sell'.

Additional earnings reports from U.S. custodian bank BNY Mellon and industrial supplies maker Fastenal are also on the schedule.