Canada’s main stock exchange jumped on Friday. Data release in US said consumer inflation cooled for the month on January.
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The S&P/TSX composite index gained 608 points or 1.87% at 33,073.71.
Index finished down by 2.4% at 32,465.28 on Thursday, further retreating from a record high notched earlier this week.
Weighing down sentiment was a decline in tech stocks in the U.S., which reflected market jitters around possible disruptions from new artificial intelligence models. Canadian tech shares fell 3.7%.
Waning bets that the Federal Reserve will cut interest rates in the first half of 2026 also hit precious metals prices, sending Canada’s materials sector — including metals mining shares — lower.
U.S. stocks subdued
The benchmark S&P 500 index closed flat at 6,835.08 points, the blue-chip Dow Jones Industrial Average ticked up 0.1% to settle at 49,500.93 points, and the tech-heavy NASDAQ Composite fell 0.2% to conclude at 22,546.67 points.
The main averages on Wall Street tumbled in the prior session, weighed down by a slump in the tech-focused Nasdaq Composite which reflected fresh concerns around possible disruptions from artificial intelligence.The Nasdaq Composite lost a hefty 2%, while the S&P 500 dropped nearly 1.6% and the Dow Jones Industrial Average shed almost 670 points, or 1.3%. For the week, the S&P shed 1.4%, the Dow fell 1.2%, and the Nasdaq was down 2.1%. January CPI cools
According to the U.S. Bureau of Labor Statistics, headline consumer price index (CPI) rose 2.4% Y/Y in January, below the consensus of 2.5% and decelerating from December’s 2.7% reading. On a M/M basis, headline CPI rose 0.2%, also below the estimate of 0.3%. Core CPI came in-line on both a M/M and Y/Y basis. The soft headline print comes just days after a blowout January nonfarm payrolls report. The CME Fedwatch tool showed traders slightly upping their bets that the Fed would ease interest rates this year.
Arista Networks, Applied Materials offer upbeat outlook
The tech sector remains in the spotlight, with the likes of Arista Networks, Applied Materialsand Pinterest all releasing their results after the close on Thursday.
Network gear supplier Arista Networks reiterated its full-year gross margin guidance despite being dented by increased memory chip prices.
Applied Materials also announced an upbeat forecast, underlining how the AI boom and memory chip shortage is bolstering sales at the largest U.S. semiconductor equipment maker.
On the flip side, Pinterest forecast first-quarter revenue below estimates, as the image-sharing platform battles sharper cutbacks in ad spending by tariff-hit retailers and mounting pressure from deep-pocketed rivals.
CPI data looms large
Away from the corporate sector, the focus is now squarely on consumer price index inflation data for January, due later in the session, for more cues on the world’s biggest economy.
The print is expected to show headline and core CPI cooling slightly from the prior month.
But CPI data has landed above market expectations in January for the past four years, leaving markets on edge over a potentially heated reading.
Uncertainty over U.S. interest rates grew this week following stronger-than-expected nonfarm payrolls data for January. The print showed the labor market remained tight – a trend that gives the Federal Reserve less impetus to cut interest rates further.
Any signs of sticky inflation could further this notion, pressuring U.S. markets.
Investors are pricing in a high chance of unchanged policy in March and April, CME Fedwatch showed.
Gold higher
Gold prices were higher in European trade, paring back losses on Thursday fueled by heightened uncertainty over the path of U.S. interest rates.
Bullion benefited from some safe haven demand on Friday after a host of reports said Washington planned to deploy a second aircraft carrier -- the USS Gerald R. Ford -- in the Middle East, as nuclear talks with Iran faltered.
Spot gold last rose 1% to $4,970.87 an ounce, while gold futures climbed 0.9% to $4,991.24/oz. Spot prices tumbled over 3% in the prior session.
Crude drops
Oil prices remained set for a weekly decline, as traders assessed forecasts of a substantial supply surplus and rising inventories as well as receding risks surrounding a possible conflict between the U.S. and Iran.
Brent futures last dropped 0.5% to $67.14 a barrel, and U.S. West Texas Intermediate crude futures fell 0.7% to $62.38 a barrel.
Both contracts slipped nearly 3% in the previous session, putting them on track for just under 1% weekly losses.
