Investing.com - U.S. stock futures pointed to a sharply lower open on Wednesday morning, with a slide in crude oil prices and uncertainty over the state of U.S. tax reforms dampening risk sentiment, as investors geared up for more data and earnings.
The blue-chip Dow futures tumbled 130 points, or around 0.6%, by 6:50AM ET (1150GMT), the S&P 500 futures dropped 14 points, or about 0.6%, while the tech-heavy Nasdaq 100 futures lost 32 points, or roughly 0.5%.
All three major U.S. stock indexes ended lower on Tuesday as General Electric (NYSE:GE) plunged for a second straight day.
Weak oil prices again weighed on investor appetite for riskier assets. Oil prices fell another 1%, extending Tuesday's sharp losses, amid speculation weekly supply data due later in the day will show a large increase in U.S. crude inventories.
The U.S. Energy Information Administration will release its official weekly oil supplies report for the week ended Nov. 10 at 10:30AM ET (1530GMT).
Meanwhile, uncertainty over the outlook for U.S. tax reform also weighed. U.S. Senate Republicans on Tuesday said their tax plan will involve the repeal of the Obamacare individual mandate that requires most Americans to have some form of health coverage.
Markets are concerned about whether or not the tax plans can be passed before the year ends. Republicans had initially hoped to hold a final vote on the bill by Thanksgiving next week, but analysts expressed some doubt at the timeline.
On the data front, the Commerce Department will publish October inflation figures at 8:30AM ET (1330GMT), as market players look to see how it will impact the Federal Reserve's view on monetary policy in the months ahead.
Market analysts expect consumer prices to inch up 0.1%, while core inflation is forecast to rise 0.2%.
At the same time, the Commerce Department will also publish data on retail sales for October. The consensus forecast is that the report will show retail sales increased 0.1% last month. Core sales are forecast to gain 0.2%.
In earnings news, discount retailer Target (NYSE:TGT) reported fiscal third-quarter results that beat expectations ahead of the opening bell and provided an upbeat outlook.
Cisco Systems (NASDAQ:CSCO) and L Brands (NYSE:LB) are some of the big brands set to publish their latest financial figures after the bell.
Elsewhere, European stocks were on track to notch their seventh losing session in a row, as strength in the euro and a drop in commodity shares drew the regional benchmark near an eight-week low.
Earlier, in Asia, markets stumbled, with Japan's Nikkei tumbling 1.6% to close lower for the sixth straight session.