India, June 25 -- After moving sharply higher to start the week, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open, with the S&P 500 futures up by just 0.1 percent.

Traders may be reluctant to make significant moves following a two-day rally, which saw the major averages reach their best levels in four months.

The strong upward moves seen on Monday and Tuesday have also lifted the Nasdaq and the S&P 500 back within striking distance of their record highs.

Traders are also likely to keep an eye on development in the Middle East following yesterday's news of a ceasefire between Israel and Iran.

Shortly after the start of trading, the Commerce Department...