U.S. Stock Futures Climb on Trade Negotiations With China, Fed Interest Rate Decision Upcoming

U.S. stock index futures climbed early Wednesday as optimism grew over the resumption of trade negotiations between the U.S. and China. However, gains remained modest as investors exercised caution ahead of the Federal Reserve’s policy decision later in the day.

As of 05:35 ET (09:35 GMT), Dow Jones Futures were up 200 points, or 0.5%, while S&P 500 Futures and Nasdaq 100 Futures each rose 0.5%, gaining 26 and 100 points respectively.

Trade Talks Signal Potential Thaw in U.S.-China Relations

Investor sentiment improved after both U.S. and Chinese officials confirmed plans to resume trade talks this week. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet Chinese Vice Premier He Lifeng in Switzerland on May 8, according to announcements released Tuesday evening.

The talks mark the first formal engagement between the two economic superpowers since tensions escalated in April following a heated exchange of tariffs. Recent weak economic data from both countries had deepened concerns about the global fallout of a prolonged trade war.

Despite the positive news, U.S. President Donald Trump tempered expectations by stating he was in «no rush» to sign trade deals, adding a layer of uncertainty to the negotiations.

Focus Turns to the Fed

While trade headlines provided an initial lift, attention is now firmly on the Federal Reserve, which is expected to hold interest rates steady in its latest policy meeting.

Amid conflicting economic signals—Q1 GDP contracted, yet consumer spending and labor market conditions remain strong—investors are looking to Fed Chair Jerome Powell’s press conference for insight into the central bank’s outlook.

The Fed has already cut rates by 1% through 2024 and indicated a slower path for easing in 2025. However, with the next official rate forecast update not due until June, Powell’s comments will be closely scrutinized.

Earnings in Focus: Super Micro Slides, AMD Climbs

Corporate earnings remain a key driver for markets. After Tuesday’s close, several semiconductor companies reported results:

• Super Micro Computer (SMCI) plunged after issuing weaker-than-expected annual guidance and disappointing quarterly earnings.
• Advanced Micro Devices (AMD) gained in premarket trading after forecasting Q2 revenue above expectations.
• Marvell Technology (MRVL) dropped after delaying its investor day, citing economic uncertainty.

Big names on the earnings docket for Wednesday include Uber Technologies (UBER), Walt Disney (DIS), and Arm Holdings (ARM).

Oil Prices Rebound on Trade Optimism and Inventory Data

Crude prices moved higher, helped by renewed trade optimism and signs of robust U.S. demand. The American Petroleum Institute reported a 4.5 million barrel drop in U.S. crude inventories for the week ending May 2, indicating continued strength in consumption.

As of 05:35 ET:

• Brent crude rose 0.6% to $62.51 per barrel
• West Texas Intermediate (WTI) gained 0.8% to $59.55 per barrel

Official stockpile data from the Energy Information Administration (EIA) is due later in the session. the session.