U.S. stock futures showed a mixed pattern on Wednesday after President Donald Trump postponed the implementation of tariffs on Canadian imports, a move that had been scheduled to begin at midnight. The temporary halt in tariffs, following last-minute negotiations, drew attention from investors assessing the impact on markets amid persistent high bond yields.
At 4:11 p.m. (Bangkok Time), Dow Jones Industrial Average futures registered a slight decline of 0.01%, while S&P 500 futures advanced 0.06%. Nasdaq 100 futures edged 0.11% higher. This performance followed a prior losing day for equities, in which the Dow shed 116 points, the S&P 500 lost 0.7%, and the Nasdaq Composite dropped 1.3%, marking the steepest decline among the major indices.
A decline in technology shares coincided with new highs in long-term government bond yields. The 30-year US Treasury yield reached levels last seen nearly two decades ago, while the yield on Japan’s 10-year government bond rose to a three-decade peak.
Despite the multi-year highs in bond yields, equities displayed only a moderate reaction. Market participants are wagering that sustained economic expansion, coupled with solid corporate profitability, will keep equities resilient even as borrowing costs climb.
Market sentiment shifted early Wednesday when Trump posted on social media that a three-day pause on the planned 50% tariffs on Canadian goods had been agreed upon, pending formalization of a deal with Canada. This announcement followed urgent discussions between U.S. officials and Canadian Prime Minister Mark Carney’s administration.
While analysts have suggested that the economic effects of the proposed tariffs would have been limited, the move is broadly viewed as an indication of shifting trade dynamics ahead of future negotiations tied to the US-Mexico-Canada Trade Agreement (USMCA).
Traders are also awaiting the release of minutes from the most recent Federal Open Market Committee meeting, which is expected later on Wednesday. The document will be closely scrutinized due to evident divisions among policymakers, as seen by three dissenting votes in favor of a rate increase at the previous meeting.
Additionally, upcoming financial results from Target, Lowe’s, and TJX Companies are anticipated to provide further insight into consumer demand during the spring and summer months.
