US stock futures showed little movement Wednesday as traders assessed recent trade policy shifts. The Dow dipped 0.02%, while the S&P 500 slipped 0.01%. Meanwhile, the Nasdaq edged up 0.07% in premarket trading.
Investors remained cautious despite recent market optimism. Earlier this week, softer inflation data and a US-China tariff truce lifted Wall Street sentiment. The two nations agreed to temporarily reduce tariffs after months of escalating trade tensions.
The US will lower additional Chinese import duties from 145% to 30% for three months. In response, China will cut tariffs on US goods from 125% to 10%. This pause follows intense negotiations between Washington and Beijing last weekend.
On Tuesday, the S&P 500 finally turned positive for 2025 after struggling since February. Still, the index remains 4% below its all-time high from earlier this year. Both the S&P 500 and Nasdaq have now erased losses triggered by April’s tariff announcements.
Market stability improved after the US granted a 90-day tariff freeze for non-China trade partners. Strong corporate earnings and a limited US-UK trade deal further supported the rebound. Analysts warn, however, that uncertainties linger.
President Trump’s ongoing Gulf visit added another layer of market focus. Traders monitored whether new trade agreements might emerge during his Middle East meetings. Earlier, Trump met with Syria’s leader in Saudi Arabia.
Tuesday’s inflation report also influenced trading activity. Consumer prices rose 0.2% in April, below the expected 0.3% increase. March had seen a 0.1% decline, making the modest rebound a relief for markets.
Deutsche Bank analysts noted that tariffs had not yet significantly impacted consumer prices. They highlighted that April’s data included newly imposed baseline tariffs. This suggests inflation remains manageable despite trade policy shifts.
Later Wednesday, at least three Federal Reserve officials are scheduled to speak. Their remarks could provide clues about future interest rate decisions. Markets will also react to retail earnings and economic indicators.
In corporate news, American Eagle Outfitters fell premarket after withdrawing its annual forecast. The apparel retailer cited challenging market conditions for its decision. Other retailers may face similar pressures as consumer spending trends evolve.
For now, traders remain watchful for further trade developments. Any unexpected policy changes could quickly shift market sentiment.
For more business updates, visit DC Brief
