Overview
Futures linked to Canada’s benchmark equity index were slightly higher early Wednesday as market participants awaited a delayed U.S. jobs report that is expected to provide the first comprehensive update on labour market conditions in weeks.
By 06:20 ET (11:20 GMT), the S&P/TSX 60 index standard futures contract was up 8 points, or 0.4%.
Canadian market context
On Tuesday, the broader S&P/TSX composite index advanced 0.7% to close at 33256.83, marking a new all-time high and surpassing the previous peak recorded on January 28. The materials sector, which includes metals mining companies, contributed gains that helped offset declines in both technology and consumer staples stocks.
Investors remain alert to concerns about widespread disruption from artificial intelligence across multiple industries. Financial services firms, insurance brokers and software companies have all faced selling pressure amid fears that AI could erode demand for certain products and services, though some market observers have argued those concerns may be overstated.
U.S. futures and recent equity moves
U.S. stock futures were marginally higher in early trading. By 06:35 ET, S&P 500 futures had gained 10 points, or 0.1%; Nasdaq 100 futures were up 23 points, or 0.1%; and Dow Jones futures had advanced 83 points, or 0.2%.
On Tuesday, the S&P 500 slipped 0.3% and the NASDAQ Composite fell 0.6%, driven in part by declines in technology and other growth-oriented names. The Dow Jones Industrial Average eked out marginal gains to register a record closing high above 50,000 points for the third consecutive session.
Earlier in the day, attention centered on U.S. retail sales data showing monthly consumer spending had stalled and came in below market expectations. That weaker reading prompted questions about whether persistent inflationary pressures are beginning to erode household demand, even as other parts of the economy show signs of resilience. The data reinforced bets that the Federal Reserve could consider cutting rates later this year if growth cools further.
Employment and inflation on deck
Market participants were focused on the January jobs report, scheduled for release on Wednesday after a delay caused by a recent government shutdown. The report is expected to be the first detailed labour market update in several weeks, arriving at a time when policymakers are closely monitoring employment trends for any signs of slack.
Also in traders' sights is the delayed U.S. consumer price index report, due on Friday. Employment and inflation are both central pillars of the Federal Reserve’s policy framework, and readings on those two measures are likely to influence expectations about the path of interest rates.
Corporate headlines
Robinhood Markets slid in premarket action after releasing quarterly results that disappointed investors, with revenue and user metrics coming in softer than expected.
Lyft shares tumbled following an earnings report that failed to meet analyst expectations.
Ford Motor Co. reported quarterly results that missed Wall Street forecasts. The shortfall reflected charges tied to the company’s electric-vehicle business, disruptions in the supply chain, and a delay to the effective date of tariff relief associated with the Trump administration. Despite the quarterly miss, Ford’s management projected stronger earnings for 2026, a forward-looking outlook that provided some support for the stock.
Commodities: gold and oil react
Gold prices rose after the softer U.S. retail sales report increased bets that the world’s largest economy might be cooling, intensifying focus on the upcoming payrolls data for clearer signals. Spot gold was last reported up 1.8% at $5,114.60 an ounce, while gold futures had risen 2.1% to $5,138.26. Spot prices remained below the record highs seen in late January and continued to show volatility. A weaker dollar provided limited support, and ongoing uncertainty related to geopolitical tensions in the Middle East also weighed on safe-haven demand.
Oil prices climbed as traders sought more clarity on U.S.-Iran relations and monitored travel demand ahead of a significant Chinese holiday. Crude recovered from some Tuesday losses, aided by a subdued dollar and anticipation of key U.S. economic reports. Brent futures increased 2.1% to $70.20 a barrel, while West Texas Intermediate crude futures rose 2.1% to $65.33 a barrel.
Iranian officials said nuclear talks with the United States had allowed Tehran to assess Washington’s seriousness and signalled that diplomacy would continue. Those comments followed talks last week over Tehran’s nuclear program, which came after the U.S. deployed several warships to the Middle East. Although both sides reported some progress from weekend discussions, those remarks were overshadowed by a U.S. warning to ships transiting the Strait of Hormuz.
Reports also indicated consideration of deploying a second U.S. aircraft carrier near Iran, a development that market participants said could significantly increase regional tensions. Against that backdrop, traders factored a risk premium into oil prices amid concerns that any escalation could disrupt supply flows.
Model-driven stock idea note
One featured market product noted that its AI-driven strategy evaluates Ford (ticker F) alongside thousands of other companies using more than 100 financial metrics. The note said the model aims to identify stocks that offer attractive risk-reward profiles based on current data and highlighted past winners identified by the approach, including Super Micro Computer (+185%) and AppLovin (+157%).
What to watch next
Investors will be watching the delayed January jobs report and the postponed U.S. consumer price index release for fresh guidance on employment and inflation, two variables pivotal to monetary policy decisions. Corporate earnings headlines and evolving geopolitical developments in the Middle East are likely to add volatility across equities and commodity markets in the near term.
For now, modest gains in Canadian futures and small upticks in U.S. contracts set the tone for a cautious market session ahead of those key economic releases.