Futures linked to Canada’s main stock exchanged edged lower on Friday, pointing to a potential pause it what has been a torrid rally for the index.
By 06:50 ET (10:50 GMT), the S&P/TSX 60 index standard futures contract had slipped by 2 points, or 0.1%.
In the prior session, the S&P/TSX composite index gained 0.8% to end at 29,407.89, surpassing an all-time peak touched just a day earlier.
Bolstering sentiment were figures showing that U.S. consumer prices growth accelerated in August, albeit roughly in line with expectations, while weekly initial jobless claims ticked up to nearly a four-year high. The numbers reinforced bets that the Fed would slash rates at its September 16-17, with officials seen prioritizing an easing labor market over sticky inflation.
Markets are now all but certain the Fed will reduce borrowing costs from their current range of 4.25% to 4.5% by at least 25 basis points, according to CME’s FedWatch Tool. There is around a 7% chance the central bank will opt for a deeper, half-point drawdown.
Meanwhile, Canadian Prime Minister Mark Carney also unveiled a plan to lift production of liquefied natural gas at a Shell-led plant in the province of British Columbia, all in a bid to diversify the country’s economy.
U.S. futures subdued
U.S. stock futures ticked down slightly, consolidating after Wall Street recorded fresh record highs as benign consumer prices and a weakening labor market kept Federal Reserve rate cut bets intact.
At 06:57 ET, Dow Jones Futures fell 81 points, or 0.2%, S&P 500 Futures slipped 7 points, or 0.1%, and Nasdaq 100 Futures were mostly unchanged.
On Thursday, the blue-chip Dow Jones Industrial Average notched a record-high close, ending above 46,000 for the first time. The benchmark S&P 500 and tech-heavy NASDAQ Composite also rose by 0.9% and 0.7%, respectively, touching all-time peaks as well.
All three major averages are up about 1.6% week to date. The S&P 500 is on pace for its best weekly performance since early August and its fifth positive week in six. The Nasdaq is on track for its second winning week in a row, while the DJIA is poised to post its first positive week in three.
Fed rate cut cemented for next week
Data on Thursday showed U.S. consumer prices rose 0.4% in August, slightly above expectations and the sharpest monthly increase since January.
That pushed the annual rate to 2.9%, the fastest in seven months, raising questions about how quickly inflation is easing toward the Fed’s 2% target. Still, the figure matched economists’ estimates.
At the same time, weekly jobless claims jumped to 263,000, the highest level since 2021, underscoring signs of softening in the labor market after last week’s weak nonfarm payrolls report.
These data releases did little to alter expectations that the Fed will cut interest rates at its Sept. 16-17 meeting.
Traders in futures markets are pricing in a near-certainty of a 25 basis point reduction, with slim odds of a larger half-point move.
“Inflation was a touch higher than expected and tariffs are likely to keep it elevated over coming months, but the weakening of the jobs market is now the Fed’s priority, with rising jobless claims hinting at a pick-up in lay-offs at a time when hiring is subdued,” ING analysts said in a note.
The University of Michigan surveys are due later in the session, and investors are likely to keep a close eye on inflation expectations as a guide to future Fed interest rate moves.
Adobe lifts annual forecasts
In the corporate sector, Adobe Systems is in the spotlight after the maker of popular editing platforms like Photoshop and Premiere Pro raised its annual financial forecasts, citing solid demand for its artificial intelligence-enhanced design software tools.
Elsewhere, luxury furniture maker RH (NYSE:RH) reported a quarterly revenue miss, while Super Micro Computer, the AI tech firm, announced it has begun volume shipments of its Nvidia Blackwell Ultra solutions to customers worldwide.
Microsoft and OpenAI said on Thursday evening that they had reached a non-binding agreement over the AI start-up’s plans to transition to a for-profit organization.
There are also a number of IPOs set to start trading Friday, including the Winklevoss-led crypto exchange Gemini Space Station, Black Rock Coffee Bar, Via Transportation and Legence.
Crude bounces after hefty losses
Oil prices rose, bouncing after the previous session’s sharp losses on fears around oversupply as well as a possible weakening in U.S. demand.
At 06:58 ET, Brent futures climbed 1.2% to $67.15 a barrel, and U.S. West Texas Intermediate crude futures rose 1.0% to $63.01 a barrel.
Oil fell nearly 2% on Thursday, but the crude benchmarks are still on course for weekly gains after strength at the start of the week on the potential for disruptions to output or trade flows from conflict and war.
An Energy Information Administration report on Wednesday said U.S. crude stocks rose last week by 3.9 million barrels to 424.6 million barrels, suggesting demand in the largest energy consumer in the world is set to slow as the year progresses.
Additionally, the International Energy Agency said in its monthly report world oil supply would rise more rapidly than expected this year due to planned output increases by the Organization of the Petroleum Exporting Countries and allies like Russia, a group known as OPEC+.
Gold inches up
Gold prices rose Friday, hovering just below record highs, as signs of a cooling U.S. labor market reinforced bets on a Federal Reserve rate cut next week despite slightly stronger inflation data.
At 06:59 ET, spot gold was up 0.5% at $3,651.08 per ounce, not far from a record high of $3,673.95 touched earlier this week, and U.S. gold futures expiring in December climbed 0.4% to $3,689.07/oz.
Bullion was set to rise approaching 2% this week, heading for its fourth consecutive weekly jump. The metal has gained nearly 40% year-to-date, helped by central bank buying and safe-haven demand amid trade uncertainties over President Donald Trump’s tariff announcements.
Source :
https://www.investing.com/news/stock-market-news/tsx-futures-inch-lower-after-index-logs-fresh-record-closing-high-4236845
