U.S. stock futures turned lower on Wednesday, erasing earlier gains, with markets gauging uncertainties around geopolitics and trade, as well as the upcoming release of minutes from the Federal Reserve's latest meeting.
By 06:17 ET (11:17 GMT), the Dow futures contract had fallen by 66 points or 0.2%, S&P 500 futures had dropped by 6 points or 0.1%, and Nasdaq 100 futures had declined by 11 points or 0.1%.
The main averages on Wall Street all closed higher on Tuesday after oscillating around the flatline for much of the session, with the benchmark S&P 500 in particular notching a new all-time peak.
Murkiness around the geopolitical environment and a ratcheting up in international trade tensions are both looming in the background of a holiday-shortened trading week.
U.S. President Donald Trump has suggested that he could meet with Russian counterpart Vladimir Putin before the end of February, following extraordinary talks between U.S. and Russian representatives on ending the war in Ukraine. Trump also said he would slap tariffs on cars imported into the U.S. "in the neighborhood of 25%," as well as other duties on semiconductors and pharmaceutical products.
Still, analysts noted that there were no major alterations to recent developments that have driven markets.
"The long holiday weekend produced a lot of news, but after sifting through everything, one finds the narrative largely the same as before," analysts at Vital Knowledge said in a note to clients.
Fed minutes in focus
One potential catalyst for equities could come on Wednesday from the release of minutes from the Federal Reserve's latest policy meeting, when the central bank chose to leave interest rates steady and signaled a wait-and-see approach to future possible borrowing cost reductions.
Investors are hoping that the minutes could provide more insight into how Fed policymakers expect the path of rates to evolve in the coming months.
Officials have previously cited concerns that Trump's sweeping tariff plans could refuel inflationary pressures as one reason for their relative caution around the outlook for rates. Recent data have also pointed to a potential reacceleration in price growth, as well as declining consumer sentiment and dropping retail sales.
This week, several officials have backed their decision in January to push pause on a series of rate cuts that stretched back into 2024, highlighting an inflation rate above the Fed's 2% target level and resilience in the broader economy.
In individual stocks, shares in Arista Networks (NYSE:ANET) slid in premarket U.S. trading, with analysts noting a year-over-year decline in revenue from Meta Platforms (NASDAQ:META), a major customer of the networking equipment provider.
Occidental Petroleum (NYSE:OXY) shares were also lower after the oil and gas firm unveiled production forecasts that were short of estimates.
Meanwhile, shares in Wix.com Ltd (NASDAQ:WIX) rose in premarket U.S. trading on Wednesday after price increases and strong demand for the website builder's artificial intelligence-enhanced products helped it post better-than-anticipated fourth-quarter income.
Oil inches higher
Oil prices ticked up on Wednesday as traders eyed worries over possible supply snags due to drone strikes on Russian oil infrastructure and cold weather in the U.S.
Yet gains were limited by the prospect of easing sanctions on Russia -- and a subsequent return of supplies from the major oil-producing country -- in the event of a peace deal to halt the war in Ukraine.
Brent crude futures rose 0.5% to $76.26 a barrel by 06:13 ET, while West Texas Intermediate crude futures had increased by 0.6% to $72.29 per barrel.
