Investing.com -- Investors gear up for fresh U.S. inflation data that could impact Federal Reserve policy decisions, while quarterly results from big banks are set to unofficially start second-quarter earnings season. Elsewhere, producer prices in China fall at their steepest pace since 2015 and consumer prices stand on the edge of deflation, casting doubt over the health of the economy.

1. U.S. futures lower to begin trading week

Stock futures on Wall Street edged down on Monday as investors looked ahead to the release of U.S. inflation numbers and a slate of earnings from large banks this week (see below).

At 05:02 ET (09:02 GMT), the Dow futures contract had slipped by 30 points or 0.09%, S&P futures lost 10 points or 0.24%, and Nasdaq 100 futures shed 55 points or 0.37%.

The main indices finished the prior trading week in the red following mixed jobs market data, which was widely interpreted as an indication that the Federal Reserve will likely unveil a further interest rate hike as expected at its upcoming policy meeting later this month.

On Friday, the benchmark S&P 500 fell by 0.29%, the broad-based Dow Jones Industrial Average declined by 0.55%, and the Nasdaq Composite decreased by 0.13%.

2. U.S. inflation data and bank earnings highlight weekly agenda

Fresh inflation figures out of the U.S. are set to be the key event of this week's economic calendar, while results from big U.S. banks will get the ball rolling on second-quarter earnings.

The June consumer price index from the world's biggest economy is expected to increase by 3.1% annually, which would be the slowest since March 2021. On a month-on-month basis, it is estimated to accelerate slightly to 0.3%. Meanwhile, the core reading, which is closely watched by Federal Reserve policymakers, is seen rising by 5.0% year-on-year and 0.3% monthly.

As it was with the labor market data last week, these numbers are anticipated to influence the thinking of Fed officials, who have made corralling elevated inflation a central objective of the central bank's recent year-long campaign of policy tightening.

Elsewhere, Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), and Wells Fargo (NYSE:WFC) will report their quarterly returns on Friday. Analysts have flagged that the banking giants may be hit by the largest uptick in loan losses since the COVID-19 pandemic.

3. Deflation pressures mount in China

Factory-gate prices in China decreased by the most in more than seven years in June, while consumer prices flirted with deflation, in the latest sign of sluggishness in the world's second-largest economy.