Wall Street heads into midweek directionless as traders eye Fed minutes

• Dow rose 0.5% to 53,589 and S&P 500 gained 0.3% to 7,716, while Nasdaq fell 0.2% to 26,250 as investors reassessed elevated AI and tech valuations after three straight losing sessions
• Trump paused 50% tariffs on Canadian goods for three days citing progress toward a deal, easing trade tensions ahead of USMCA trade pact negotiations
• Corporate earnings mixed: Target raised annual sales outlook and shares edged higher, while Lowe's forecasted flat comparable sales; Moderna surged on positive late-stage cancer vaccine results with Merck

Summary

Market Performance:

US markets showed mixed results on Wednesday, with the Dow Jones rising 0.5% to 53,589 and the S&P 500 gaining 0.3% to 7,716, while the Nasdaq fell 0.2% to 26,250. Technology stocks faced continued pressure following three consecutive losing sessions as investors reassessed elevated AI and tech valuations.

Bond Market Developments:

A rally in government bonds provided relief to equities after the US Treasury announced it would at least double liquidity-support buybacks of longer-dated securities. This move helped push the 30-year Treasury yield lower following its climb to a 19-year high in the previous session.

Trade Policy:

President Donald Trump paused 50% tariffs on Canadian goods for three days, citing progress toward a potential bilateral deal. The levies were originally scheduled to take effect at midnight and relate to ongoing USMCA trade pact negotiations.

Corporate Highlights:

• Moderna surged alongside Merck after reporting positive interim late-stage results for an individualized mRNA cancer vaccine combined with Keytruda for melanoma patients
• Target edged higher after raising its annual sales outlook, with price-cutting initiatives successfully attracting customers
• Lowe's faced pressure after forecasting flat comparable sales for the year amid cautious consumer spending on discretionary home-improvement projects

Global Markets:

Asian markets struggled overnight, with Japan's Nikkei down 3% and South Korea's KOSPI tumbling 5%, pressured by rising bond yields and firmer oil prices.

Outlook:

Traders awaited the release of Fed July meeting minutes for insight into ongoing inflation debates.