TLDR
- Trump paused 50% Canadian tariffs for three days, citing a deal in progress with Canada
- US stock futures are mostly flat Wednesday after a losing week on Wall Street
- Asian markets fell sharply overnight, with Japan’s Nikkei down 3% and South Korea’s KOSPI down 5%
- Fed meeting minutes from July’s FOMC meeting are due Wednesday and could move markets
- Chip stocks led Tuesday’s selloff, though Treasury yields dipped slightly to ease some pressure
US stock futures were mostly flat on Wednesday morning as investors digested President Trump’s last-minute pause on Canadian tariffs and waited for key signals from the Federal Reserve.
Futures for the Dow Jones Industrial Average and S&P 500 hovered near the flat line. Nasdaq-100 contracts edged slightly higher after a rough Tuesday session.
Trump posted on Truth Social late Tuesday night that he had paused the 50% Canadian tariffs for three days. He said the pause was based on a deal being finalized between the US and Canada.
The announcement came after 11th-hour talks between Trump officials and Canadian Prime Minister Mark Carney’s team. Experts say the tariffs would have had limited economic impact but carry weight as a signal for upcoming trade negotiations under the US-Mexico-Canada Trade Agreement.
TRUMP: Pauses 50% Canada tariffs scheduled for tomorrow for three days, says deal awaits final documents pic.twitter.com/kNxAbh2KPt
— Trump Truths (@trumptruthsbot) August 19, 2026
The broader market has had a difficult week. Rising bond yields and higher oil prices have weighed on major indexes throughout the week.
Tuesday’s session was particularly rough for tech. Chip stocks took a beating as the AI trade lost momentum, dragging the Nasdaq lower.
Asian Markets Add Pressure
Overseas markets added to the cautious mood overnight. Japan’s Nikkei fell 3% and South Korea’s KOSPI dropped 5%, pointing to little relief for Wall Street at the open.
The 10-year Treasury yield slipped 2 basis points to 4.69% early Wednesday. That small move helped ease some concern about bond vigilantes selling off government debt.
Fed Minutes in Focus
The main event Wednesday is the release of minutes from the Federal Open Market Committee’s July meeting. Traders are hoping the minutes will give clearer signals on where interest rates are headed.
If policymakers appear focused on fighting inflation, that could trigger another selloff. Given thin summer trading volumes, the minutes could have an outsized effect on markets.
Lombard Odier Chief Investment Officer Michael Strobaek said conditions are in place for further upside. He pointed to expanding capital investment, solid growth, and improving corporate earnings. But he cautioned that risks remain.
Earnings from Target, Lowe’s, and TJX Companies are also due Wednesday. Those results will give investors a read on consumer spending trends heading into the back half of the year.
As of early Wednesday, S&P 500 futures were up 0.1%, Nasdaq-100 futures rose 0.2%, and Dow futures ticked up about 41 points.
Markets remain in a holding pattern, with traders watching the Fed closely for any shift in tone on inflation and rate policy.
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