Futures linked to Canada’s primary stock benchmark were modestly higher on Friday, signaling that the S&P/TSX could close out a fourth straight week of gains following indications of a possible softening in Middle East tensions.
By 07:47 ET (11:47 GMT), the S&P/TSX 60 index standard futures contract had inched up by 2 points, or 0.1%. On the previous trading day, the S&P/TSX slid 0.3% to 34,052.23, with consumer-facing names feeling pressure from the possibility of sustained higher oil prices even as rhetoric pointed toward progress in talks aimed at ending hostilities between the U.S. and Iran.
U.S. equity futures were also trading higher. As of 08:02 ET, the Dow futures contract was up 241 points, or 0.5%, S&P 500 futures had gained 25 points, or 0.4%, and Nasdaq 100 futures had increased by 91 points, or 0.4%. Each of the three major U.S. futures contracts was positioned to register a weekly gain.
In the regular session a day earlier, the benchmark S&P 500 and the tech-heavy Nasdaq Composite set fresh record highs after U.S. President Donald Trump said that fighting between Israel and Lebanon had been paused. Trump also indicated that negotiations between Washington and Tehran might resume this weekend, ahead of a ceasefire expiration later in the month.
With a fragile truce appearing to hold, market participants shifted their focus back toward the technology sector. The report noted that firms producing the hardware that supports advanced AI chips - specifically Sandisk, Intel, and Micron Technology - were among the stronger performers as investors renewed interest in AI-related names following their early-2026 selloff tied to concerns over disruptions from emerging AI tools.
Analysts have additionally pointed to generally solid corporate results at the start of the latest quarterly reporting season. Executives at major Wall Street banks described the U.S. economy as resilient despite an energy shock tied to the Iran conflict, and industrial-linked companies such as J.B. Hunt recorded profits even as fuel costs rose because of the war.
Michael Brown, Senior Research Strategist at Pepperstone, commented in a note that he expected market participants to keep focusing on the broader trajectory, which seemed to be toward de-escalation and toward some form of agreement. He said: "So long as that remains the case, it seems that risk appetite should remain underpinned, with the 'path of least resistance' for equities continuing to lead to the upside, as participants increasingly focus not only on calmer geopolitical tones, but also renewed AI enthusiasm, and a thus far solid corporate reporting season."
President Trump said Washington and Tehran were "very close" to striking a deal and added that Iran had agreed not to possess a nuclear weapon for more than 20 years. In return, Iran had called for the removal of international sanctions. Trump also said he would consider extending the ceasefire if the U.S. was near an agreement with Tehran. The president’s comments were cited as part of the developments that have contributed to a softer geopolitical backdrop.
Energy markets reacted to the diplomatic signals as well. Oil prices pulled back and were trading below $100 a barrel following the announcements. The article notes that crude spiked after the Iran war began in late February, which in turn fueled concerns about a potential rise in inflationary pressures globally and the risk of slowing growth. Both the International Energy Agency and the Organization of Petroleum Exporting Countries were reported to have warned of softer oil demand in the coming months. The piece also highlighted that ongoing, limited shipping through the Strait of Hormuz - a key transit for roughly one-fifth of the world’s crude - along with a continuing U.S. blockade of Iranian ports, could affect supplies.
Gold was broadly steady on Friday and remained on track for a weekly gain, as some investors appeared to return to the metal after a sharp selloff in the prior month. The article observed that expectations that central banks might respond to energy-driven inflation by raising interest rates had weighed on gold earlier, since bullion typically underperforms in higher-rate environments. Simultaneously, the U.S. dollar had strengthened at one point on the view that heavy energy exports might help shield the U.S. economy from supply disruptions through the Strait of Hormuz. A firmer dollar can make gold more expensive for overseas buyers. However, the dollar had largely pulled back as hopes increased for progress in peace negotiations between Washington and Tehran, and on Friday a measure tracking the dollar against a basket of currencies had weakened slightly and was set for more than a 0.5% decline.
Investors were also paying attention to a wave of corporate earnings reports. Streaming giant Netflix saw its shares fall in premarket U.S. trading and in early European trading after it issued revenue growth guidance that missed expectations and announced that Chairman Reed Hastings would not stand for re-election. The company kept its full-year outlook unchanged but warned that second-quarter operating margins would be lower year-over-year.
In a letter, Netflix explained that "growth in content amortization will be first-half weighted due to the timing of title launches," and that it expected the second quarter to "have the highest year-over-year content amortization growth rate in 2026, before decelerating to mid-to-high single digit growth in the second half of the year." The company also said that Hastings, who co-founded Netflix nearly three decades ago when it operated as a DVD-by-mail business, would step down from the board after his term ends in June.
Aluminum producer Alcoa slipped after reporting first-quarter profit and revenue that disappointed analysts, with higher costs and weaker demand cited as the drivers. Conversely, U.S.-listed shares of Autoliv, the world's largest maker of airbags and seatbelts, jumped following results that beat first-quarter expectations.
Although the economic calendar was described as relatively light, market participants were expected to monitor remarks from several Federal Reserve officials, including San Francisco Fed President Mary Daly, Richmond Fed President Tom Barkin, and Federal Reserve Governor Christopher Waller. Those comments could influence investor perceptions of monetary policy and risk appetite in the near term.
Separately, the article included promotional references aimed at traders, noting a service that offers chart-based trade plans for stocks such as INTC, but no further market-specific claims beyond what had already been reported.
In sum, futures tied to Canadian and U.S. equity benchmarks were trading higher on Friday morning amid signs that diplomatic progress could be reducing geopolitical risk in the Middle East. That easing has coincided with rotation back into technology stocks tied to AI hardware, a mixed set of corporate earnings, lower oil prices relative to recent spikes, and stabilizing gold after earlier weakness.