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Update: US-Canada Tariff Situation Nudges US Equity Futures Lower Pre-Bell

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(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)

US equity futures were lower pre-bell Monday as traders assessed the tariff situation between the US and Canada after trade negotiations between the two countries failed.

Dow Jones Industrial Average futures were flat, S&P 500 futures were down 0.1%, and Nasdaq futures were 0.5% lower.

Trade talks between the US and Canada failed and the US on Saturday imposed 50% tariffs on around $20 billion worth of imports from its neighbor in the north. Canadian Prime Minister Mark Carney said he planned to retaliate with tariffs starting Sept. 8. "Canada wants the benefits of being a State, without being one!!!" President Donald Trump said in a post Sunday on Truth Social.

US Treasury Secretary Scott Bessent is set to give details at 2 pm ET on Monday about "economic D-Day" against Iran, which would be "greatest financial offensive ever," Reuters reported, citing an opinion piece by the official published in Financial Times on Sunday.

Traders digested the latest round of earnings, with PDD (PDD) reporting lower Q2 non-GAAP earnings and higher revenue.

Nvidia (NVDA) and CrowdStrike (CRWD), among others, are expected to report financial results this week.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.4% at $91.38 per barrel and US West Texas Intermediate crude 1.8% lower at $85.53 per barrel.

The Chicago Fed national activity index for July came in at negative 0.08, compared with 0.06 previously and expectations for a reading of negative 0.05 in a survey compiled by Bloomberg.

In other world markets, Japan's Nikkei closed 0.7% lower, Hong Kong's Hang Seng ended 1.9% lower, and China's Shanghai Composite finished 0.6% lower. Meanwhile, the UK's FTSE 100 and Germany's DAX index were flat in Europe's early afternoon session.

In equities, PDD shares rose 3.2% after the company posted better-than-expected Q2 non-GAAP earnings. United Airlines (UAL) stock was up 1.4% after a CNBC report on Sunday citing Chief Executive Scott Kirby that the company is looking to expand its footprint internationally and at the John F. Kennedy International Airport in New York. InterContinental Hotels Group (IHG) shares were 2% higher after the company said it signed a 14-hotel portfolio conversion deal with GCP Hospitality, a unit of Gaw Capital Group.

On the losing side, Alibaba Group (BABA) stock was down 2% after the company said Sunday it priced a placement 710 million new shares at 112.70 Hong Kong dollars ($14.38) apiece in Hong Kong for about HK$80 billion in proceeds. TotalEnergies (TTE) shares fell 1.1% after a Reuters report citing Chief Executive Patrick Pouyanne that the company will invest in the Fujairah oil export pipeline expansion in Abu Dhabi and continue investing in the Middle East despite ongoing conflict in the region.

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Asia Markets

Tadawul Shares Surge on Sunday; Saudi Arabia's July Construction Cost Index Ticks Up

The Tadawul All Share Index closed 1.13% in the green on Sunday as investors focus on Saudi Arabia's latest economic release and tariff updates.According to the General Authority of Statistics, the kingdom's construction cost index rose 2.3% annually in July after a 2.7% rise in the prior month. Month over month, the construction index remained steady."CCI for the residential sector recorded an annual increase of 2.2%. This was driven by a 4.2% rise in the costs of renting equipment and machinery, mainly due to a 5.7% increase in the costs of renting equipment and machinery with operators," the regulatory body said in its report. "CCI for the non-residential sector recorded an annual increase of 2.6% compared to the corresponding month of 2025, due to an increase in the costs of renting equipment and machinery by 5.8%, driven by an 7.3% increase in the rental of equipment and machinery with operators, a 1.8% increase in labor costs, and a 3.0% increase in energy costs."Speaking of economic releases, the local economic calendar will see the release of the kingdom's export and import numbers for June on Tuesday. Market watchers will also look out for the estimated quarterly GDP growth rate data of the US on Wednesday.In other news, Canada decided to impose retaliatory tariffs on certain US goods after President Donald Trump ordered a 50% levy on Canadian products. The "dollar for dollar" tariffs will become effective on Sept. 8.Back at home, Saudi Energy Co. (SASE:5110) and Acwa Power (SASE:2082) entered into 15-year storage services deals for the Al-Muwaih, Haden, and Kahafah battery energy storage system independent storage projects in Hail and Makkah.Saudi Energy and Acwa shares closed 0.29% and 1.18% higher, respectively.

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Asia Markets

US Equity Indexes Rise Despite Surging Bond Yields as US Nears Tariff Deal With Canada

US equity indexes rose markedly on Friday, even as bond yields continued to rise after Canada's trade minister Dominic LeBlanc reportedly said the countries are "very close" to finalizing a deal before the Saturday midnight deadline.LeBlanc met US trade representative Jamieson Greer on Thursday and said the two sides were close to finalizing a deal, but added that more work was required, according to a Friday Reuters report.President Donald Trump said in a Thursday Truth Social post that he paused tariffs on certain Canadian goods, adding that the canceled Keystone XL Pipeline may also be revived.In a separate Truth Social post on Friday, Trump said that he had closed a deal to "substantially" lower the price of ground beef for US consumers and will allow up to 300,000 metric tons of the commodity to be imported with no out-of-quota tariff.The Nasdaq Composite rose 0.4% to 26,180.4, and the S&P 500 gained 0.4% to 7,674.3. The Dow Jones Industrial Average rose 0.9% to 53,276.8. Materials and financial sectors led the gainers, while utilities and energy led the decliners.The yield on 30-year Treasuries rose 3.7 basis points to 5.274%, while the 10-year yield gained 3.8 basis points to 4.736%.The US West Texas Intermediate crude oil contract fell 0.2% to $86.64 per barrel.In economic news, Bureau of Labor Statistics data revealed that the unemployment rate fell in 10 US States in July and remained steady elsewhere. The largest unemployment rate declines were observed in South Carolina, Ohio, Illinois, Washington, Pennsylvania, New York, and Rhode Island.The August flash reading of manufacturing conditions from S&P Global fell to 53.2 from 53.9 in July, compared with expectations for no change in a survey compiled by Bloomberg. The index for services conditions rose to 56.8 in August from 54.6 in July, compared with expectations for a decrease to 54.Gold futures gained 2.3% to $4,677.3 per ounce, and silver futures rose 2% to $69.495.Jupiter Neurosciences (JUNS) shares rose 16% after it said it priced a direct offering of 307,692 shares for gross proceeds of $2 million. The offering is expected to occur Aug. 24, with D. Boral Capital as placement agent.In equity news, Ross Stores (ROST) shares rose 4.4%, a day after the company posted a Q2 beat and raise. The company reported fiscal Q2 earnings late Thursday of $2.66 per diluted share, up from $1.56 a year earlier. Analysts polled by FactSet expected $1.95. Revenue for the three months ended Aug. 1 rose to $6.26 billion from $5.53 billion a year earlier. Analysts projected $6.16 billion. The company boosted its full-year EPS guidance to $8.61 to $8.77 from the prior forecast of $7.50 to $7.74. Analysts project $7.89.RF Acquisition Corp II (RFAI) shares rose more than 350% after the company's shareholders approved its merger with Nanyang Biologics at an extraordinary general meeting, according to a US Securities and Exchange Commission filing.

Dow JonesNasdaq CompositeS&P 500$JUNS$RFAI$ROST
Asia Markets

US Equity Indexes Lower This Week as Trump Threatens Major Economic War on Iran

*US equity indexes were lower this week after President Donald Trump warned of severe economic sanctions against Iran and any country that offers a lifeline to the Middle East nation.* The S&P 500 hovered around 7,672.5 on Friday versus 7,785.76 a week ago. The Nasdaq Composite stood at about 26,159.7, compared with 26,729.16 a week earlier, and the Dow Jones Industrial Average was lower at 53,207.2, versus 53,732.41 at the end of last week.* Trump warned of extreme economic actions against Iran and any country that supports or conducts business with the Middle East nation after the deadline to reach a permanent peace deal expired. Iran's Foreign Minister Seyed Abbas Araghchi dismissed Trump's warning in an X post, describing it as a diversion from America's challenges of "unprecedented debt & surging interest costs."*Bond yields continued to rise despite the Treasury Department ramping up repurchases of long-dated government debt, and Secretary Scott Bessent stated that the repurchases could exceed $4 billion per operation, CNBC reported Thursday, citing an interview with the official.*Most Federal Open Market Committee participants agreed to maintain the federal funds rate at 3.50% to 3.75%. While FOMC participants acknowledged that inflation remained elevated, most expected it to decline over the remainder of the year as the effects of tariffs and earlier energy price hikes fade. They also observed that economic activity continued to expand at a robust pace while labor market conditions appeared stable.*President Donald Trump also paused tariffs on certain Canadian goods, according to a Truth Social post. He also said the Keystone XL Pipeline, which was canceled in 2021, may be revived. The tariff play comes ahead of negotiations for the US-Mexico-Canada Trade Agreement.*The August flash reading of manufacturing conditions from S&P Global declined to 53.2 from 53.9 in July, compared with expectations for no change in a survey compiled by Bloomberg. The index for services conditions rose to a 20-month high reading of 56.8 in August from 54.6 in July, compared with expectations for a decrease to 54.*US mortgage applications fell by 0.4% in the week ended Aug. 14, with an increase in refinancing activity offset by declining home purchase applications, according to the Mortgage Bankers Association.*According to the Labor Department, US initial jobless claims declined to 206,000 in the week ended Aug. 15 from the upwardly revised 212,000 level in the week earlier, and lower than 210,000 expected in a survey of analysts compiled by Bloomberg.*In company news, Moderna (MRNA) shares climbed by over 100% this week, and Merck (MRK) shares gained over 11% after the companies said a trial of intismeran autogene combined with Keytruda met the primary endpoint of recurrence-free survival and a key secondary endpoint of distant metastasis-free survival in patients with completely resected stage IIB-IV melanoma.

Dow JonesNasdaq CompositeS&P 500$MRK$MRNA