Stock market today: Dow, S&P 500, Nasdaq futures stall after Trump pauses tariffs on Canada

Stock market stocks experienced a brief respite on Wednesday, ending a three-day decline, as the US Treasury Department announced plans to boost purchases of long-term government debt, causing yields to drop significantly. The Dow Jones Industrial Average and the S&P 500 both increased by 0.2%, while the tech-dominated Nasdaq Composite also slightly gained 0.2%.

In terms of individual stocks, shares of Moderna surged by 176% following the company's announcement of positive results from a late-stage trial of a melanoma vaccine developed in collaboration with Merck. This positive news for Moderna came after Treasury yields dropped to their lowest levels in years, leading to a rise in bond prices as investors reacted positively to the increased government debt purchases.

The 10-year yield (^TNX) fell by 5 basis points to 4.65%, and the 30-year yield (^TYX) decreased by 9 basis points to 5.19%, both of which were in contrast to the highest levels since 2007 earlier in the week. Investors closely monitored the trade situation after President Trump posted on Truth Social that he had paused 50% Canadian tariffs for three days, citing progress in finalizing documents.

The announcement followed 11th-hour discussions between Trump officials and Canadian Prime Minister Mark Carney's team. Although experts noted that the tariffs would have limited economic impacts, they were viewed as a significant signal for upcoming negotiations in the US-Mexico-Canada Trade Agreement (USMCA).

Additionally, Federal Reserve meeting minutes released on Wednesday afternoon revealed that several Federal Open Market Committee members supported raising interest rates during the central bank's policy meeting in the previous month. Committee members also expressed the possibility that raising rates might be necessary if inflation does not subside soon.