U.S. stock futures gain after Trump pauses new tariffs on Canada

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U.S. stock futures gain

Highlights

Dow and S&P 500 futures rose 0.43% and 0.28%, respectively.
Canada's tariff relief eased near-term risk.
Investors are awaiting Fed minutes for fresh clues on rates.

The latest market readings showed Dow Jones futures up 0.43% at 53,635, while S&P 500 futures gained 0.28% to 7,735.50, and Nasdaq-100 futures rose 0.26% to 29,663.50. The moves marked an improvement from earlier trading, when futures were mixed following the tariff announcement, according to Yahoo Finance.

Canada tariff delay offers limited relief

Trump postponed for three days the 50% tariffs on selected Canadian goods that had been scheduled to take effect at midnight. The decision followed last-minute negotiations between U.S. officials and Canadian Prime Minister Mark Carney's government.

Trump said the two countries had reached a deal pending final documentation. The pause removes an immediate source of trade uncertainty, but questions remain over the details of the agreement and the longer-term relationship between Washington and Ottawa.

The proposed duties would affect selected Canadian products rather than the full flow of trade between the two countries. Still, the episode carries broader significance as Washington prepares for negotiations surrounding the future of the U.S.-Mexico-Canada trade framework.

Relief over Canada has not erased the other pressures facing equities. Wall Street is coming off losses driven partly by rising Treasury yields, higher oil prices, and weakness in technology stocks. Asian markets also sold off sharply, adding to a cautious global backdrop.

Fed minutes move into focus

Attention now shifts toward monetary policy. Investors are awaiting minutes from the Federal Reserve's July meeting for more detail on policymakers' assessment of inflation and interest rates.

Bond-market conditions remain particularly important for stocks. Higher Treasury yields increase financing costs and can reduce the relative appeal of equities, with richly valued technology companies often especially sensitive to changes in long-term rates.

Corporate results are another test for sentiment. Earnings from Target, Lowe's, and TJX Companies will provide fresh evidence on consumer demand and spending patterns.

Tariff relief meets a tougher market backdrop

The synchronized rise in the three major U.S. futures contracts suggests the tariff delay has eased some immediate anxiety. But the gains remain relatively restrained, particularly after recent pressure from bonds, energy markets, and technology shares.

The next direction for Wall Street may therefore depend less on the three-day tariff reprieve and more on interest-rate expectations. The Fed minutes could shape those expectations by revealing how divided policymakers were in July and how concerned they remain about inflation.

Earlier, we reported that Treasury yields retreat from 19-year high ahead of Fed minutes.

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