Futures linked to Canada’s main stock index were modestly lower on Tuesday as market participants tracked concerns about AI-driven disruption, uncertainty around newly enacted U.S. global tariffs, and the near-term earnings outlook for domestic banks.
By 06:48 ET (11:48 GMT), the S&P/TSX 60 index standard futures contract had fallen 4 points, or 0.2%.
The broader S&P/TSX composite index had retreated 0.1% to 33,776.50 on Monday, giving back ground after reaching a record intraday high earlier. Software stocks were notable laggards, weighed by persistent anxiety over the potential disruptions from rapid advances in artificial intelligence models. Financials were also among the weaker sectors as investors prepared for quarterly results from Canadian lenders, where slowing loan growth and a subdued consumer backdrop are expected to pressure profits.
Partially counterbalancing those headwinds, materials stocks - which include metal mining companies - showed some strength, supported in part by moves in gold prices.
U.S. futures recover some losses
Across the border, U.S. stock index futures edged higher, attempting to rebound after a prior session selloff as investors digested elevated trade-policy uncertainty and AI disruption fears ahead of key reporting from Nvidia.
At 07:04 ET, Dow Jones Futures were up 135 points, or 0.3%; S&P 500 Futures had gained 16 points, or 0.2%; and Nasdaq 100 Futures were higher by 111 points, or 0.5%.
The main U.S. indices had fallen in the previous session. The Dow Jones Industrial Average closed down 1.7%, the NASDAQ Composite lost 1.1%, and the S&P 500 slipped about 1% and moved into negative territory for the year. Those declines followed a report from Citrini Research that presented a hypothetical scenario in which AI leads to significant white-collar unemployment, reduced consumer spending, increased loan defaults, and economic contraction. The report’s projection contributed to a broader reassessment of AI-related risks across a variety of companies.
Trade-policy uncertainty and a corporate lawsuit
Markets are also digesting uncertainty surrounding global trade policy after a recent Supreme Court ruling that struck down so-called -reciprocal- levies associated with former presidential actions. In the immediate aftermath, the new U.S. global tariffs took effect at a 10% level at midnight on Tuesday, according to messaging from U.S. Customs and Border Protection, which is lower than the 15% tariff level that had been discussed publicly.
The White House is reported to be working on a formal order to raise the rate to 15%. With the legal and policy picture unsettled, questions remain about the status of a range of deals the administration had reached with trading partners, and some countries have reportedly begun to reassess their arrangements.
Adding to trade-related uncertainty, FedEx filed a lawsuit against the U.S. government on Monday seeking a full refund of emergency tariffs paid over the past year. FedEx is the first company to pursue refunds following the Supreme Court decision and joins numerous firms that have pursued legal challenges to the tariffs. The Supreme Court decision also left unresolved questions about what will happen to the revenue collected under the now-invalidated tariff program - revenue that is estimated to exceed $160 billion.
Corporate moves and earnings on deck
Investor sentiment toward technology names remained fragile as markets awaited Nvidia’s quarterly report, which is widely viewed as a key read on AI demand. Nvidia is expected to post robust year-over-year earnings growth, and the company’s results are seen as a bellwether for broader AI adoption trends.
In media sector activity, Paramount Skydance has increased its bid for Warner Bros Discovery in an attempt to persuade the HBO Max owner to abandon a separate deal for its studios and streaming assets with Netflix. Reuters sources indicate Paramount’s improved offer raises its initial proposal of $30 per share - about $108.4 billion for Warner Bros as a whole. In contrast, the deal with Netflix is said to value Warner’s studios and streaming assets at $27.75 per share in cash - roughly $82.7 billion.
On the corporate earnings calendar, Home Depot is scheduled to report quarterly results before the U.S. opening bell. The retailer has previously issued less-than-encouraging guidance for fiscal 2026 comparable sales growth and profit, citing weak demand for large-ticket items.
Commodities - oil and gold
Oil prices remained close to seven-month highs as markets looked ahead to another round of U.S.-Iran nuclear discussions later in the week. Brent futures were down 0.1% to $71.04 a barrel, while U.S. West Texas Intermediate crude futures were largely unchanged at $66.30 a barrel. Both contracts were trading around levels last seen in early August 2025. Iran and the U.S. are set to hold a third round of nuclear talks on Thursday in Geneva amid concerns over the risk of military escalation as Washington pushes for the end of Iran’s nuclear program.
Gold retreated from a three-week peak on Tuesday after four straight sessions of gains, as some investors took profits and the U.S. dollar firmed in the face of renewed tariff-related jitters. At 07:18 ET, spot gold had declined 1.5% to $5,152.77 per ounce, and U.S. Gold Futures were down 1.0% to $5,173.54 per ounce. The metal had surged 2.5% in the previous session on resurgent uncertainty about U.S. trade policy. Silver also pulled back, dropping nearly 2% to $86.55 per ounce after its own four-session advance.
What this means for markets
Equity markets are balancing several cross-currents: the prospect of AI-related disruption that could alter business models and demand profiles for software and other sectors; headline risk tied to trade policy and the implementation of new tariffs; and company-level developments such as bank earnings and high-profile corporate bids. Commodities are sending mixed signals, with gold and silver correcting after recent rallies and oil prices remaining elevated amid geopolitical and diplomatic developments.
For investors, these dynamics suggest heightened sensitivity to earnings reports from banks and major technology firms, along with continued attention to developments in trade policy and the legal challenges now moving through the system. Materials and mining stocks are likely to remain responsive to metal prices, while energy names may react to any escalation or easing of geopolitical tensions tied to Iran talks.