US stock futures traded steady on Wednesday, as the S&P 500 kept a bid for record highs in play amid revived hopes for interest-rate cuts and the US-brokered ceasefire between Iran and Israel.

S&P 500 futures (ES=F) were little changed after the broad benchmark closed out Tuesday at its highest level since February, while Dow Jones Industrial Average futures (YM=F) nudged 0.1% lower. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved up 0.2% on the heels of a winning day.

Market spirits got a boost from the Jerome Powell's comments to Congress on Tuesday, as the Federal Reserve chair said policymakers could act "sooner rather than later" on rate cuts. Investors are now looking to his further testimony on Wednesday to test bumped-up bets on policy easing.

His comments will lay the ground for the release of the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report, due on Friday. Economists expect annual "core" PCE — which strips out volatile food and energy costs — to have ticked up in May, compared with April. But scrutiny will also fall on any signs that Trump's tariffs pushed prices higher.

Investors are also keeping a close eye on the US-brokered Middle East truce, which appears to be holding. There have been no reported strikes between Israel and Iran since President Trump lambasted both for breaching an agreement to pause hostilities to give room for diplomacy.

Oil prices edged higher on Wednesday as tensions cooled, with Brent futures (BZ=F) bouncing back from the biggest two-day drop since 2022. The international crude benchmark pared earlier 1% to trade above $66 a barrel, while US benchmark WTI futures (CL=F) changed hands below $65.

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