Futures linked to Canada’s primary stock gauge moved higher on Wednesday, supported by advances in energy and precious metals markets.
By 07:20 ET (12:20 GMT), the S&P/TSX 60 index standard futures contract had climbed 6 points, or 0.3%.
That followed a 0.5% decline in the S&P/TSX composite index on Tuesday, when the benchmark settled at 32,896.55. The index had pared back much of earlier-session losses but still closed lower as swings in commodity prices and sectoral divergence influenced the outcome.
Volatility in gold and a retreat in oil were notable headwinds for the commodity-sensitive Canadian market, even as other sectors delivered gains. Industrials and consumer discretionary stocks were among those that finished the session in positive territory despite the broader pullback.
Separately, economic data showing Canadian inflation slowed to 2.3% in the 12 months to January reinforced investor expectations that the Bank of Canada may eventually move to cut interest rates in 2026. Earlier projections had anticipated the central bank's next adjustment to be a rate increase.
U.S. futures and the Fed minutes
Across the border, U.S. stock index futures were trading higher ahead of several key releases, including the minutes from the Federal Reserve’s most recent policy meeting and additional corporate earnings reports.
At 07:34, Dow Jones Futures were up 56 points, or 0.1%; S&P 500 Futures had added 18 points, or 0.3%; and Nasdaq 100 Futures had risen 91 points, or 0.4%.
Major U.S. averages recorded modest gains in the prior session, supported in part by a subdued rebound among technology names that had been under pressure.
The Fed minutes, due later on Wednesday, are expected to shed light on the central bank’s outlook for future interest rates. The Fed left rates unchanged in January and emphasized continued caution amid persistent inflation and signs of weakness in the labor market.
Two Fed governors, Stephen Miran and Christopher Waller, notably dissented from the decision last month to hold rates steady, signaling differing views within the committee about the policy path. Market participants will be parsing the minutes for further cues on how policymakers are weighing inflation, employment, and the timing of potential rate moves.
Other U.S. data on the calendar includes industrial production for January and, later in the week, the PCE price index for December. The PCE reading is the Fed’s preferred inflation gauge and is expected to influence the central bank’s medium-term rate outlook.
Uncertainty around the future course of Fed policy has been a material source of market pressure in recent weeks. Commentary about the likely stance of the next Fed Chair, including reactions to President Donald Trump’s nominee Kevin Warsh, has contributed to investor caution.
Tech-sector developments
Technology companies remain front-and-center this year, as the sector grapples with the potential disruptive effects of recently released advanced artificial intelligence tools. Market participants are weighing both the growth opportunities and the unclear timeline for near-term financial returns from significant AI-related investments, including spending on data center capacity.
Palo Alto Networks added to investor caution after reporting quarterly revenue and earnings that beat expectations but issuing profit guidance that fell short of the market’s hopes. The company provides cybersecurity solutions including AI-driven platforms, firewalls, threat intelligence, zero-trust network security, and secure access service edge services. The lower-than-expected guidance has intensified debate over near-term profit trajectories in parts of the tech sector.
Investors are also watching a slate of corporate results due on Wednesday from Booking Holdings (BKNG), Carvana (CVNA) and DoorDash (DASH).
Energy and metals
Oil prices recovered some ground after tumbling nearly 2% in the previous session amid reports of progress in U.S.-Iran nuclear talks that had eased concerns about supply disruption and lowered risk premiums.
Brent oil futures for April delivery rose 2.6% to $69.19 per barrel, while West Texas Intermediate crude futures gained 2.7% to $63.92 per barrel. Both contracts had fallen in the prior session, with Brent sliding nearly 2% and WTI down about 1%.
Reports that Washington and Tehran reached an understanding on key "guiding principles" during talks in Switzerland helped lift sentiment, as market participants contemplated the prospect of more Iranian crude reaching global markets if a deal is concluded.
Gold rebounded as well after a sharp drop the previous day, with dip-buyers coming back into the market as traders awaited clearer signals from the Fed. At 05:40 ET, spot gold was up 1.1% at $4,929.69 an ounce and U.S. gold futures had advanced 0.9% to $4,949.96 per ounce. The yellow metal had declined more than 2% in the session before, when risk appetite improved amid the news from U.S.-Iran talks.
Model-driven stock screening mention
Market participants continue to use a range of tools to evaluate investment opportunities. One such model referenced in market commentary evaluates stocks including Palo Alto Networks on dozens of financial metrics to identify possible risk-reward opportunities. The model's past highlighted winners are cited in market material as examples of historical performance.
What to watch
- Release of the Federal Reserve minutes from the January meeting, for guidance on the central bank’s future policy stance.
- U.S. industrial production for January and the PCE price index for December, the latter being the Fed’s preferred inflation measure.
- Corporate earnings from technology and other sectors, including reports due from Booking Holdings, Carvana and DoorDash.
Market participants will continue to weigh commodity price swings, central bank communications and the latest corporate results as they reassess valuations and risk across sectors that include energy, materials, industrials, consumer discretionary and technology.