Canadian equity markets looked likely to open lower on Friday as technology-sector weakness abroad and a steep decline in crude prices dampened investor sentiment ahead of the bell. The softer tone in premarket indicators contrasted with Thursday’s gains: the S&P/TSX Composite had climbed 114.12 points, or 0.33%, to close at 34,850.21, and the S&P/TSX 60 Index rose 0.21% to finish at 2,054.08.
On a pre-open basis, S&P/TSX 60 futures were down 0.33%, changing hands at C$2,053.7, signaling a retreat from the previous session’s advance.
U.S. futures weighed by technology jitters
U.S. stock-index futures slipped on Friday after renewed uncertainty in the artificial intelligence space followed a report that OpenAI may delay its anticipated public offering until 2027. In morning trade, Nasdaq 100 futures fell 1.46% to 29,291.00, S&P 500 futures dropped 0.56% to 7,381.75, and Dow Jones futures slipped 0.18% to 52,244.00. The major indexes were on track for weekly declines after a week marked by notable losses in technology names.
Apple was singled out as a drag on Wall Street in the prior session after the company raised prices on several devices, a move attributed in market accounts to higher memory costs.
Precious metals and currencies
Gold steadied on Friday after three straight weekly declines, finding some support even as the metal has been under persistent downward pressure. Market commentary cited a stronger U.S. dollar and the prospect of additional Federal Reserve interest-rate increases this year as headwinds for the precious metal.
In electronic trading, Gold Futures were reported up 0.43%, trading at $4,065.15 per ounce, while XAU/USD rose 0.57% to $4,049.58. These movements represented a modest rebound following the recent run of weekly losses.
Oil plunges on easing supply concerns
Oil prices retreated sharply, falling more than 3% and pointing to a third straight weekly decline. Improved maritime traffic through the Strait of Hormuz, coupled with optimism about a potential U.S.-Iran peace agreement, cut into the geopolitical risk premium despite reports of a cargo ship attack near Oman.
Benchmarks were on pace to post weekly losses in the neighborhood of 9%, extending a retreat that followed last week’s tentative preliminary peace accord. Prices have now given back most of the gains recorded since the start of the conflict, after earlier surges pushed crude above $120 per barrel at the crisis peak.
Crude Oil WTI Futures tumbled 3.34% to $69.52 per barrel, while Brent Oil Futures fell 3.36% to $72.96 per barrel. The commodity had seen a brief uptick in the prior session after a projectile struck a cargo vessel transiting near the Strait of Hormuz, which briefly revived concerns about energy chokepoint security.
Implications for markets
The combination of renewed technology-sector volatility and a sizable downleg in oil reduced risk appetite in early trading cues. That dynamic, reflected in weaker Canadian futures and lower U.S. index futures, suggests markets were focused on both earnings-and-growth sentiment tied to tech names and on energy-price developments that influence a range of sectors including materials and energy.
Gold’s modest stabilization did little to offset the broader negative tone, as investors weighed currency strength and interest-rate expectations against safe-haven demand.
What remains uncertain
Markets will continue to watch technology-sector developments, energy-market headlines out of the Strait of Hormuz region and central-bank rate expectations for direction. The immediate market trajectory remained contingent on how these factors evolved through the trading day.