With the deadline for tariffs now moved to August 1, investors are pinning their hopes on negotiations to stave off an all-out trade war. "Market volatility is likely to pick up, but the latest development does not constitute an escalation in the trade war," UBS analysts said.

Wall Street futures are largely unchanged Wednesday and with little corporate news or earnings reports during the holiday-shortened week. There may also be a pullback ahead of critical U.S. employment data that arrives Thursday, and a looming U.S. tariff deadline next week.

Stocks are slightly higher on Wall Street as the Trump administration seeks to win more deals with global trading partners