U.S. stock futures edged lower Wednesday as investors weighed escalating tensions with Iran, a heavy slate of bank earnings and a closely watched inflation report due before the opening bell.

Dow futures were down about 0.1%, with S&P 500 and Nasdaq 100 contracts also in the red, as a cautious tone settled over markets. The pullback extends a stretch of volatility tied to geopolitics, price pressures and swings in chip and technology shares.

Earnings from Morgan Stanley and United Airlines headline a busy day, with results expected to test the resilience of the consumer and the outlook for financials and industrials. The prints arrive as analysts parse whether margin strength can survive higher funding costs.

At 8:30 a.m. ET, the Labor Department is set to release the June Producer Price Index, a wholesale inflation gauge investors will scrutinize for signs that price pressures are cooling. Economists expect a modest reading, though energy swings could muddy the signal.

Federal Reserve Chair Kevin Warsh testifies for a second day before the Senate Banking Committee, with markets attentive to his remarks on inflation, monetary policy and the economic outlook. He has emphasized controlling price pressures as the central bank's priority.

The convergence of earnings, data and geopolitics leaves little room for error. Traders are positioned for a session driven less by any single headline than by how the strands of risk reinforce one another.

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