Major financial firms, including BlackRock, JPMorgan, Wells Fargo, and BNY Mellon, are set to release their earnings reports on Friday, followed by Goldman Sachs, Citi, and Bank of America on Tuesday.

Analysts predict a lackluster quarter for the financial sector, with a projected year-over-year earnings decline of 0.4 percent for the third quarter. The banking industry is expected to report a significant 12 percent drop in earnings compared to the previous year.

However, other segments within the financial sector are forecasted to show positive growth, with Capital Markets up 11 percent, Insurance rising by 9 percent, Financial Services increasing by 4 percent, and Consumer Services gaining 1 percent. The impact of higher deposit costs on bank balance sheets, particularly on net interest income, will be closely monitored by market participants in the coming days.