News In Brief

Markets Pause as Investors Watch Trade Tariffs and Tech Earnings, US-China tariff truce, Cisco results, Sony charges and oil fluctuations dominate headlines

Stock Futures Flat as Trade Optimism Settles

US stock futures remained steady on Wednesday morning following mixed results in the previous session. While inflation figures came in lower than expected, investors are cautiously optimistic following easing trade tensions between the US and China.

By 07:38 GMT, Dow and S&P futures were little changed, while Nasdaq 100 futures ticked up by 0.1%. Wall Street closed Tuesday with the S&P 500 back in positive territory for the year, while UnitedHealth dragged the Dow lower after suspending its financial outlook and announcing its CEO’s departure.

US Cuts Tariffs on Low-Value Chinese Imports

In a major policy shift, President Trump’s administration has reduced tariffs on low-value goods from China—commonly known as “de minimis” packages—to 30%, down from at least 145%.

These shipments, valued at $800 or less, were previously hit with a 120% duty, which has now dropped to 54%. A proposed hike to a $200 flat fee in June has also been cancelled. A standard $100 fee remains in place.

Major logistics firms like FedEx and UPS, which manage large volumes of deliveries from platforms like Shein and Temu, are affected by these changes, although they operate under different regulations. Analysts say the lower levy could further ease tensions following the recent US-China trade truce.

Cisco Results in Focus

Tech giant Cisco Systems is set to report its latest quarterly earnings today. Analysts are watching closely to see how tariffs may impact margins and product pricing.

Despite potential challenges, sentiment around Cisco remains positive due to strong demand for AI-related data centre infrastructure. The company has already upgraded its annual revenue forecast, fuelled by growing enterprise investment in AI and networking.

Other companies reporting today include DXC Technology, Hawkins Inc., and Jack in the Box.

Sony Forecasts Flat Profits Amid Tariff Headwinds

Sony expects to post operating profits of 1.28 trillion yen (£8.7 billion) for the new financial year, slightly below market hopes. The company revealed it will incur a 100 billion yen (£680 million) charge due to the new US tariffs.

However, this figure does not account for the recent US-China trade agreement, which may soften the impact. In Q1, Sony reported a 4.6% rise in net profit, surpassing expectations. Its shares rebounded in the afternoon after early declines.

Oil Prices Dip Despite Global Trade Relief

After reaching a two-week high, oil prices dipped slightly on Wednesday. Brent crude edged down 0.1% to $66.57 per barrel, while WTI fell 0.1% to $63.62.

The pullback followed a 4.3 million-barrel jump in US oil inventories, signalling potential demand concerns. Market attention now turns to the US Energy Information Administration’s upcoming inventory report.

Markets in Wait-and-See Mode

As investors digest lower inflation, shifting trade policies, and key tech earnings, global markets appear to be taking a breather. Easing US-China tensions have provided relief, but questions remain around tariff impacts, corporate performance, and demand in the energy sector.

For UK-based investors and market watchers, today’s headlines reflect the delicate balance between optimism and caution in the global economic outlook.

Sources: (Investing.com, BBC.co.uk, Reuters)