Investing.com - U.S. stock futures are subdued on Wednesday after mixed trading in the prior session, with markets gauging fading trade tensions. Media reports suggest that some U.S. tariffs on low-value packages shipped from China could be as low as 30%, after a truce over levies was announced by Washington and Beijing earlier this week. Tariffs will be one point of focus when technology equipment firm Cisco Systems (NASDAQ:CSCO) unveils its expected quarterly results after the closing bell, while Sony (NYSE:SONY) flags that it will book a steep charge from the duties.
1. Futures muted
U.S. stock futures hovered around the flatline, as investor sentiment has become more sanguine following signs of a detente in global trade tensions.
By 03:38 ET (07:38 GMT), the Dow futures contract and S&P futures were mostly unchanged, and Nasdaq 100 futures had edged higher by 16 points, or 0.1%.
The main averages on Wall Street notched a mixed close on Tuesday, with traders assessing monthly inflation figures that undershot expectations but noted worries that the impact of elevated U.S. tariffs may be reflected in the data in the coming months.
Shares in UnitedHealth Group (NYSE:UNH) fell sharply, dragging down the blue-chip Dow Jones Industrial Average, after the insurer suspended its annual outlook and announced the departure of its CEO. But the tech-heavy Nasdaq Composite advanced, along with the benchmark S&P 500, which climbed back into positive territory for the year for the first time since February.
2. "De minimis" tariffs seen as low as 30% - Reuters
U.S. President Donald Trump’s administration will slash the so-called "de minimis" tariff on low-value imported packages from China to as low as 30%, according to Reuters.
On Monday, the White House unveiled an executive order bringing down the duty on these direct-to-consumer packaged items valued at $800 or less to 54% from 120%, adding to optimism spurred on by an earlier trade truce between Washington and Beijing. A flat fee of $100 remained in effect, although a planned increase to $200 in June was scrapped.
Crucially, companies like FedEx (NYSE:FDX) and United Parcel Service (NYSE:UPS), which handle a host of shipments from bargain e-commerce retailers like Shein and Temu, have different rules applied to them, Reuters noted.
Citing two delivery experts, the news agency said the rate for these packages now defaults to a standard U.S. levy of 30%. The U.S. cut its tariff on Chinese imports to this level following high-stakes talks over the weekend, lowering it from a previous rate of at least 145%.
3. Cisco to report
Highlighting the earnings calendar on Wednesday will be quarterly results from Cisco Systems, with analysts curious to see how the technology equipment firm views the impact from U.S. duties on its finances.
"For Cisco, sentiment is fairly sanguine amid signs of healthy data center/enterprise tech demand, solid capital return, and a reasonable valuation, although there will likely be at least some impact to margins from tariffs," analysts at Vital Knowledge wrote in a note to clients.
In its fiscal second quarter, Cisco lifted its annual revenue outlook, fueled by bets that a boom in enthusiasm around artificial intelligence will bolster demand for its cloud networking gear. Corporate clients have been spending heavily to build out their AI capabilities, buoying data centers that utilize Cisco’s routers and ethernet switches.
Elsewhere, several other firms are due to announce results, including DXC Technology (NYSE:DXC), Hawkins (NASDAQ:HWKN) Inc., and Jack In The Box (NASDAQ:JACK).
4. Sony Corp (TYO:6758) earnings
Sony has said it expects to post operating profit of 1.28 trillion yen ($8.7 billion) in its financial year that began in April, adding that the figure will be weighed down by a 100 billion yen charge from the U.S. tariffs.
The estimate indicates that annual income would be essentially flat at the Japanese conglomerate, whose operations span from entertainment to chips.
"We are responding quickly to the additional U.S. tariffs that have already been implemented and are considering responses to multiple possible future scenarios," the company said in a statement.
However, the hit from the levies does not take into account the trade agreement between U.S. and China announced on Monday.
For the three months ended in March, net profit jumped by 4.6% compared to a year ago to 197.73 billion yen, above analysts’ expectations. Japan-listed shares in Sony rose in afternoon trading, recovering from a dip of more than 3% in morning dealmaking.
5. Oil inches lower
Oil prices edged lower Wednesday from the recent two-week high after a sharp jump in U.S. oil inventories raised demand concerns.
At 03:44 ET, Brent futures slipped 0.1% to $66.57 a barrel, and U.S. West Texas Intermediate crude futures fell 0.1% to $63.62 a barrel.
U.S. crude stocks rose 4.3 million barrels in the week ended May 9, according to data from the industry body American Petroleum Institute, released on Tuesday.
Official weekly inventory figures from the U.S. Energy Information Administration are due later in the session, and could indicate that the demand side is still grappling with significant challenges.
Both benchmarks had climbed more than 2.5% in the previous session, adding to Monday’s gains, after China and the U.S., the two largest crude consumers, agreed to pause their trade war for at least 90 days while cutting their respective tariffs.