U.S. Stock Futures Ease Slightly as Investors Digest Trade Optimism, Look to Fed Speakers and Earnings

U.S. stock index futures edged lower early Wednesday, as Wall Street took a breather following a strong rally fueled by optimism surrounding the recently announced U.S.-China trade deal.

• Dow Jones Futures dipped 10 points, or 0.1%
• S&P 500 Futures lost 5 points, or 0.1%
• Nasdaq 100 Futures fell 20 points, or 0.1%
  (As of 05:15 ET / 09:15 GMT)

Markets Pause After Strong Gains

Wall Street closed mixed on Tuesday. The Dow Jones Industrial Average fell 0.6%, weighed down by an 18% plunge in UnitedHealth (NYSE:UNH) after the healthcare giant gave cautious guidance. In contrast, the S&P 500 rose 0.7%, while the Nasdaq Composite gained 1.6%, marking its best daily performance in over a month.

These gains follow a rally sparked by easing trade tensions, after Washington and Beijing announced a 90-day tariff rollback and expressed intent to continue negotiations. The S&P 500 has now returned to positive territory for the year, a key psychological milestone for investors.

De Minimis Tariff Cut Adds to Trade Optimism

In a further sign of trade de-escalation, the White House unveiled changes to the “de minimis” rule, lowering tariffs on low-value direct-to-consumer imports from China. Duties on packages valued at $800 or less were slashed from 120% to 54%, with a previously planned increase to 200% scrapped. A flat $100 fee remains, but this move signals a more dovish tone on consumer goods pricing.

Investors Eye Fed Commentary

With no major U.S. economic data scheduled for Wednesday, market attention turns to Federal Reserve speakers, especially following Tuesday’s soft inflation reading. The Consumer Price Index came in lower than expected, reinforcing bets that the Fed may be in no rush to raise interest rates.

Analysts at ING noted that trade de-escalation reduces inflation risks, which in turn gives the Fed “more room to remain patient.” ING now sees a 25 basis point rate cut in September as more likely, compared to the 50 bps previously forecast.

Cisco Earnings in Focus

The day’s corporate earnings calendar is headlined by Cisco Systems (NASDAQ:CSCO). Investors will watch closely to assess how the company’s margins and forward guidance have been impacted by trade policy and component costs.

The tech sector continues to ride the AI wave. Nvidia (NASDAQ:NVDA) surged Tuesday after disclosing it would sell 18,000 AI chips to Saudi firm Humain, which plans to build a 500-megawatt AI data center—a project signaling deepening Middle East investment in advanced technology infrastructure.

Other companies set to report Wednesday include:

• DXC Technology (NYSE:DXC)
• Hawkins (NASDAQ:HWKN)
• Jack In The Box (NASDAQ:JACK)

Investors will be watching for any guidance that reflects the impact of lingering macroeconomic uncertainties and global policy shifts.