U.S. Stock Futures Rise Slightly on Hopes for Trade Talks; ADP Employment Data in Focus

U.S. stock index futures edged up on Wednesday, building on the previous session’s solid gains as investors grew hopeful that upcoming talks between President Donald Trump and Chinese President Xi Jinping could breathe new life into stalled trade negotiations.

As of 05:35 ET (09:35 GMT), Dow Jones Futures rose 90 points, or 0.2%, S&P 500 Futures added 14 points, or 0.2%, and Nasdaq 100 Futures advanced 36 points, also 0.2% higher.

Wall Street closed higher on Tuesday, driven in part by strong performance in chip stocks, as markets anticipated more clarity on U.S. trade discussions with China and other key partners.

Trump–Xi Call Expected Amid Trade Deadline

President Trump is expected to speak with Chinese President Xi Jinping later this week, following accusations that Beijing violated an earlier agreement to ease tariff tensions—claims China denies. The conversation could be pivotal as a key deadline approaches: U.S. trading partners have until the end of Wednesday to submit their “best offers” to avoid steep new import tariffs. So far, only the U.K. has reached a preliminary deal with Washington during the 90-day grace period.

Meanwhile, Trump’s aggressive tariff stance is facing legal challenges domestically. On Wednesday, he reiterated his hardline approach on Truth Social, describing Xi as “very tough” and “extremely hard to make a deal with.”

“Markets may also be adopting a slightly more optimistic stance on U.S.–China trade tensions ahead of the scheduled Trump–Xi call this week,” strategists at ING wrote in a note to clients. “Recently, such direct talks have eased trade pressures.”

Despite the cautious optimism, Trump followed through on earlier warnings by signing a proclamation to double tariffs on steel and aluminum—from 25% to 50%—effective immediately.

Labor Market Data in Focus

Investors are also closely watching new labor market data scheduled for release later today. The ADP National Employment Report is expected to show that private employers added 111,000 jobs in May, rebounding from April’s sharp slowdown to 62,000.

On Tuesday, separate data from the U.S. Labor Department showed job openings rose in April, although layoffs also increased—potential signs of softening in the labor market ahead of Friday’s closely watched nonfarm payrolls report.

Corporate Movers: CrowdStrike Falls, HPE Beats

In corporate news, shares of Hewlett Packard Enterprise (HPE) rose after the company posted better-than-expected quarterly earnings. In contrast, CrowdStrike (CRWD) saw its stock decline after issuing weaker revenue guidance for the current quarter.

Investors are also monitoring Dollar Tree (DLTR), which is scheduled to report earnings before the market opens.

Oil Prices Hold Steady After Supply-Driven Rally

Crude oil prices remained near flat in early Wednesday trading, following a sharp rally the previous day as investors assessed OPEC+ output plans and fresh concerns over the global economic impact of tariffs.

At 05:35 ET, Brent crude was down 0.1% to $65.60 per barrel, while U.S. West Texas Intermediate (WTI) crude also dipped 0.1% to $63.34.

Both benchmarks surged roughly 2% on Tuesday, hitting two-week highs. The rally was driven by supply concerns from Canadian wildfires and uncertainty over Iran’s acceptance of a U.S. nuclear deal proposal—a key condition for lifting sanctions.

Adding to the bullish tone, OPEC+ announced it would limit output increases in July to 411,000 barrels per day, a figure lower than many market participants had anticipated.