U.S. stock index futures traded near unchanged levels on Wednesday as investors monitored President Donald Trump’s upcoming trip to China and prepared for another round of corporate earnings and economic developments. Trump is expected to hold talks with Chinese President Xi Jinping this week, with discussions likely to cover trade, Taiwan and the ongoing conflict involving Iran. Meanwhile, Cisco Systems (NASDAQ:CSCO) is scheduled to release quarterly earnings results, while the U.S. Senate is expected to confirm Kevin Warsh as the next chair of the Federal Reserve.
Futures remain close to flat
At 03:33 ET, Dow futures were down 26 points, or 0.1%, while S&P 500 futures added 12 points, or 0.2%. Nasdaq 100 futures outperformed, rising 151 points, or 0.5%.
Wall Street ended the previous session mixed as investors weighed ongoing tensions between Washington and Tehran against a pullback in semiconductor stocks, which had recently rallied sharply on renewed optimism surrounding artificial intelligence.
Market sentiment was also pressured by fresh inflation data showing that U.S. consumer prices continued to rise rapidly in April after a strong increase the previous month. Investors remain concerned that the Iran conflict and the continued closure of the Strait of Hormuz are contributing to an energy shock that could intensify inflation and prompt central banks globally to maintain higher interest rates.
Reflecting these concerns, market expectations for Federal Reserve rate hikes by next April climbed to 20 basis points. Yields on benchmark U.S. government bonds also moved higher, with the 10-year Treasury yield reaching its highest level since June 2025 and the interest-rate-sensitive 2-year note also advancing. Rising yields can reduce the relative attractiveness of equities because bond prices and yields typically move in opposite directions.
Trump prepares for talks in China
Attention is increasingly shifting toward China, where Trump is due to meet Xi Jinping later this week.
The leaders are expected to discuss several major geopolitical and economic issues, including trade relations and Taiwan. However, analysts believe the conflict between the United States and Iran may dominate much of the summit’s attention.
Some observers have suggested that China, as a major buyer of Iranian crude oil, could potentially play a role in supporting a lasting peace agreement, although expectations for a diplomatic breakthrough have eased.
Negotiations between Washington and Tehran appear to have stalled. Earlier this week, Trump rejected Iran’s response to a U.S. peace proposal, describing it as “unacceptable” and a “piece of garbage.” Reports have also circulated over the possibility that the White House could resume military strikes against Iran.
Iranian officials, meanwhile, have not indicated any willingness to make further concessions to the Trump administration.
Oil prices remain elevated despite slight pullback
The prolonged deadlock has effectively kept the Strait of Hormuz — a key shipping route off Iran’s southern coastline through which around one-fifth of global oil supply passes — largely shut for weeks.
In a research note, analysts at Deutsche Bank said there is “increased nervousness [among investors] that a U.S.-Iran deal looks further away than most would have hoped when the more positive news flow came through a week ago,” when reports suggested an agreement could be close.
Oil prices therefore remain well above the roughly $70-per-barrel levels seen before the U.S. and Israel launched military operations against Iran in late February. Brent crude futures, the international benchmark, were last down 0.9% at $106.82 a barrel.
Cisco earnings in focus
Investors are also awaiting quarterly results from Cisco Systems (NASDAQ:CSCO), which are due after the close of U.S. trading.
Cisco’s report will mark the beginning of a broader earnings season for companies reporting fiscal quarters ending in April. Earlier earnings releases covering periods ending in March were generally strong and helped support equity markets despite concerns tied to inflation and geopolitical tensions.
In February, Cisco reported adjusted gross margins below expectations, partly due to sharply higher memory chip prices. Demand for processors used in AI infrastructure has contributed to supply shortages and rising costs across the technology sector.
Chief executive Chuck Robbins said at the time that Cisco had responded by increasing prices and revising customer contract terms.
Senate expected to confirm Warsh as next Fed chair
The U.S. Senate is expected to vote later Wednesday on confirming Kevin Warsh as the next Federal Reserve chair, succeeding current chair Jerome Powell.
On Tuesday, the Senate approved Warsh’s nomination to the Federal Reserve Board of Governors in a 51-45 vote, granting him a 14-year term on the board.
The vote largely followed party lines, although Democratic Senator John Fetterman joined Republicans in supporting Warsh’s confirmation.
Warsh was selected by Trump, who has repeatedly pressured the Federal Reserve to cut interest rates in an effort to support economic growth.