Futures linked to Canada’s main stock index pointed higher on Wednesday, bolstered by a climb in energy and precious metals prices.
Track Canadian stocks with InvestingPro By 07:20 ET (12:20 GMT), the S&P/TSX 60 index standard futures contract had jumped by 6 points, or 0.3%.
The S&P/TSX composite index slipped by 0.5% to 32,896.55 on Tuesday, despite having pared back much of its losses notched earlier in the session.
Volatility in the gold prices, as well as retreat in the price of oil, weighed on the commodity-heavy Canadian index, although other sectors like industrials and consumer discretionary finished higher.
Data showing that Canadian inflation slowed to 2.3% in the twelve months to January also bolstered wagers that the Bank of Canada will eventually lower interest rates in 2026. Prior predictions had seen the BoC’s next move as a hike.
U.S. futures rise
U.S. stock index futures traded higher, ahead of the release of the minutes from the latest Federal Reserve policy meeting as well as more quarterly earnings.
At 07:34, Dow Jones Futures gained 56 points, or 0.1%, S&P 500 Futures advanced 18 points, or 0.3%, and Nasdaq 100 Futures rose 91 points, or 0.4%.
The main averages on Wall Street posted minor gain in the prior session, buoyed by a muted rebound in under-pressure technology shares.
Fed minutes in spotlight
The focus in the coming days will be squarely on a host of key economic indicators, including the minutes of the Fed’s January meeting, for more cues on the world’s largest economy.
The Fed minutes are due later Wednesday, and are expected to provide more insight into the central bank’s plans for future interest rates. The Fed left rates unchanged in January and had flagged continued caution over sticky inflation and labor market weakness.
Notably, two Fed governors, Stephen Miran and Christopher Waller, dissented from the Fed’s decision last month to hold rates steady and push pause on a series of borrowing cost cuts dating back to the middle of last year.
Industrial production data for January is also due Wednesday, while PCE price index data for December is scheduled for Friday.
The PCE print is the Fed’s preferred inflation gauge, and is likely to factor into the central bank’s long-term outlook on interest rates.
Uncertainty over the Fed has been a major weight on Wall Street in recent weeks, especially after President Donald Trump’s nominee for the next Fed Chair, Kevin Warsh, was viewed as a less dovish choice.
Palo Alto’s guidance disappoints
The tech sector has been in the spotlight for most of the new year as worries remained around the outlook for an industry that has been jolted by the unveiling of a series of cutting-edge artificial intelligence tools. Some traders have begun to fear the AI models could disrupt a swath of businesses ranging from software and financial services to real estate and logistics.
