Investing.com - U.S. stock futures edged higher, as markets focused on the upcoming release of crucial inflation data and near-constant fluctuations in President Donald Trump’s trade policy. The European Union says it will roll out tariffs on U.S. goods after Washington’s levies on global imports of steel and aluminum came into effect on Wednesday. Meanwhile, Ukraine agrees to a temporary ceasefire with Russia after a meeting with U.S. officials led to the reinstatement of American security support for Kyiv.
1. Futures point higher
U.S. stock futures hovered just above the flatline on Wednesday, with investors awaiting a key inflation reading and assessing the rapid twists in President Trump’s tariff plans.
By 04:43 ET (08:43 GMT), the S&P 500 futures contract had added 18 points or 0.3%, Nasdaq 100 futures had climbed by 70 points or 0.4%, and Dow futures had increased by 86 points or 0.2%.
The main averages sank on Tuesday following a whipsaw session fueled by Trump’s on-and-off levies. The president had threatened to double import duties on Canadian steel and aluminum imports in response to a 25% levy imposed by the province of Ontario on electricity exports to the U.S. Ontario later dropped the trade tax and Trump backed down from his warning.
Still, equities on Wall Street ended the session lower, as traders continued to fret over both the confusion sowed by Trump’s shifting pronouncements and the impact of the tariffs on U.S. economic growth.
“Investors are by no means sanguine on this subject and assume there will be tariff tape bombs on a daily basis for the foreseeable future,” analysts at Vital Knowledge said in a note to clients.
2. CPI ahead
Traders are now awaiting the release of the all-important monthly consumer price index on Wednesday.
The closely-watched inflation gauge for February will encompass the first full month of Trump’s second term in office, and potentially provide a glimpse into how price gains are being impacted by his trading stance. Prices grew at the fastest pace since August 2023 in the opening month of 2025.
Economists anticipate that the headline figure cooled to 2.9% from 3.0% in the twelve months to February. Month-on-month, it is seen easing marginally to 0.3% from 0.5%.
The number will be among the last the Federal Reserve receives before its next policy gathering on March 18-19. The central bank pushed pause on an easing cycle at its last meeting in January and indicated that it will take a wait-and-see approach to further rate cuts, partly citing uncertainty around the inflationary impact of Trump’s tariff policies.
But signs of slowing inflation and faltering economic activity could bolster the case for reductions this year.
3. U.S. steel and aluminum tariffs come into effect
Trump’s expanded tariffs on steel and aluminum came into effect on Wednesday, marking the latest salvo in his drive to overhaul the U.S. trading relationship with both friends and foes alike.
The move, which aims to bolster protections for U.S. manufacturers of steel and aluminum, restores effective global levies of 25% on all imports of these metals from any country in the world. The scope of the duties have also been increased to include a range of downstream products -- or "derivative" goods -- like metal furniture and hinges.
Although the tariffs have received the backing of domestic steel and aluminum producers, economists have flagged that the action could drive up the costs of everyday items like tin cans and cars -- and eventually place a drag on the broader economy.
Outside of the U.S., a host of countries have vowed to respond. The European Commission, the executive arm of the European Union, said it would enact its own countermeasures on 26 billion euros worth of U.S. goods from next month.
China’s foreign ministry has said it would push to protect its interests and a top official in Japan warned that the trade taxes could imperil economic ties with Washington. Canada -- the largest supplier of steel and aluminum to the U.S. -- hit out at Trump’s action, as did other traditional U.S. allies Britain and Australia.
4. U.S. to resume security support for Ukraine
The U.S. has agreed to restart intelligence sharing and military aid to Ukraine after Kyiv said it would support the Trump administration’s proposal for a 30-day ceasefire with Russia.
Following a meeting on Tuesday in Saudi Arabia between officials from the U.S. and Ukraine, the two said in a joint statement that the terms of any ceasefire would still be subject to Russia’s approval. The Kremlin, which did not have a presence at the gathering in the coastal city of Jeddah, did not provide an immediate response.
But the U.S. promised to "communicate to Russia" that Russian reciprocity is the "key to achieving peace," with Secretary of State Marco Rubio noting the onus is now on Moscow to end the war.
The announcement pointed to a thawing in tensions between the U.S. and Ukraine, which were ratcheted up after a recent tense meeting between Trump and Ukrainian President Volodymyr Zelenskiy at the White House that played out live before the global media. Both leaders have since made statements that suggested a willingness to move past the incident and work to negotiate a peace deal.
5. Oil rises
Oil prices rose in European trade, recovering mildly after increased concerns over U.S. tariffs and slowing economic growth dragged prices to over three-year lows.
Traders were now focused on the U.S. inflation data, as well as a monthly report from the Organization of the Petroleum Exporting Countries (OPEC) for more cues on supply.
Oil has gained some ground this week, although sentiment remained largely on edge as worries remained that tariff-related disruptions could lead to weak demand.
Expectations of some supply disruptions in Russia also aided prices, after Ukraine claimed it had attacked a major oil refinery in Moscow. This came after Kyiv agreed to a tentative ceasefire deal brokered by the U.S., which Moscow is yet to accept.