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%.
Treasury yields fell sharply after the US Treasury Department announced plans to at least double the size of its government debt buyback operations.
The Treasury said it would increase buybacks targeting longer-dated government debt, including bonds in the 10- to 20-year and 20- to 30-year segments. The move sent yields at the longer end of the Treasury curve sharply lower.
The 30-year Treasury yield, which climbed above 5.33% earlier this week to its highest level in 19 years, fell nearly 9 basis points to 5.196%. The benchmark 10-year Treasury yield declined 6 basis points to 4.647%.
Lower yields provided some relief to stocks, particularly growth and technology shares, after rising borrowing costs had weighed on Wall Street earlier in the week.
Among individual stocks, Moderna surged 96% after the company and Merck reported positive initial results from a late-stage trial of their experimental personalised cancer vaccine. Merck shares gained 7%.
The strong gains in Moderna and Merck provided a boost to sentiment, although technology stocks remained mixed.
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.
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.
