Indiana plans to waive both players.
Stauskas and Baldwin were traded from the Portland Trail Blazers to the Cleveland Cavaliers on Sunday. The Cavaliers then traded the duo to the Rockets on Wednesday, before they were traded once more Thursday.
The Rockets moved under the luxury tax by trading Baldwin and Stauskas.
Stauskas, 25, was the No. 8 overall pick in the 2014 NBA Draft. The five-year veteran began his career with the Sacramento Kings before being traded to the Philadelphia 76ers in 2015. The Sixers traded the Michigan product to the Brooklyn Nets in 2017. Stauskas signed with the Blazers last offseason in free agency.
He is a free agent again this next offseason.
Baldwin, 22, was the No. 17 overall pick in the 2016 NBA Draft. The Vanderbilt product began his career with the Memphis Grizzlies before being waived in 2017. He signed a deal with the Blazers in between stints in the G-League.