Dow, S&P 500 futures flat, Nasdaq slips as Moderna jumps 96%, Merck gains 7%
US stock futures were little changed on Wednesday, August 19, as investors weighed President Donald Trump’s decision to pause planned tariffs on Canadian goods against rising oil prices and weakness in technology stocks.
Futures tied to the Dow Jones Industrial Average rose 0.1%, while S&P 500 futures hovered near the flatline. Nasdaq-100 futures slipped 0.2%.
Trump said late Tuesday on Truth Social that he had paused the 50% tariffs on Canadian goods for three days, citing progress toward a deal between the US and Canada, subject to finalising the documents.
The move offered some relief to markets, which have been under pressure this week from rising bond yields, higher oil prices and a sell-off in technology stocks.
In premarket trading, Moderna shares surged 96% after the company and Merck reported positive results from a late-stage trial of their personalised mRNA cancer vaccine. The experimental treatment, used alongside Merck’s Keytruda, met the trial’s primary goal of reducing the risk of melanoma recurrence and also showed a benefit in preventing the cancer from spreading.
Merck shares also jumped 7% in premarket trading, while the strong gains in both companies provided a boost to the broader market.
Oil prices climbed nearly 1% amid reports that Iran was considering an attack on a US target in Europe. Higher crude prices have added to concerns over inflation and pushed global bond yields higher, weighing on investor sentiment, reported CNBC.
Investors will focus on the minutes of the Federal Reserve’s July meeting, due later Wednesday, for clues on policymakers’ views on inflation, interest rates and the broader economic outlook.
The minutes are expected to draw particular attention after three Fed officials dissented at the July meeting in favour of a rate hike. Investors will look for further details on the divisions within the central bank and the outlook for monetary policy.
On the earnings front, results from Target, Lowe’s and TJX Companies are also due, offering investors fresh clues about the health of the US consumer.