U.S. stock index futures slipped on Wednesday after a sharp rally in the previous session, when easing tariff tensions boosted sentiment, as investors focused on AI bellwether Nvidia's upcoming earnings and developments on the trade front.

U.S. stocks were headed for slight losses early on Wednesday after strong gains the previous day over easing trade tensions with the European Union. Earnings from chip maker Nvidia after the market close are set to take the spotlight.

Fears have grown that a new U.S. budget bill would put even more stress on the country’s already large deficit.

Futures for Canada's main stock index edged lower on Wednesday, pulling back from the previous session's record high, as investors awaited trade-related developments and chip giant Nvidia's quarterly results later in the day.

Good morning from London. It's just over 90 minutes until European equity markets open, after which stocks look set to trade in mixed territory. Futures tied to the German DAX index are currently down 0.2% and FTSE 100 futures are marginally lower. French CAC 40 futures are bucking the trend with a 0.2% rise.

S&P 500 futures are dipping 0.1%. Dow Jones Industrial Average futures are down 0.2%. Nasdaq 100 futures are slipping 0.1%. On Tuesday, the Dow Jones Industrial Average rose 741 points, or 1.78%, to 42,

U.S. stock index futures jumped on Tuesday after President Donald Trump rolled back his threat of steep tariffs against the EU and tensions between the United States and the European bloc cooled as traders returned after the Memorial Day break.

Trump’s tariffs and the trade war continue to impact global markets. Follow along for live updates on the Dow, S&P 500 and Nasdaq.