Futures linked to Canada’s commodity-centric main equity gauge opened higher on Monday as investors digested reports that the United States and Iran had reached an agreement to halt direct clashes and resume negotiations, news that helped offset weakness in gold prices.
By 07:52 ET (11:52 GMT), the S&P/TSX 60 index standard futures contract had gained 7 points, or about 0.3%.
The broader S&P/TSX composite index, which has been supported by a rally in commodity prices year to date, has been trading near record highs and is positioned to log its eighth consecutive quarterly advance by the end of this month.
Markets are watching a number of geopolitical and economic items this week, and attention in North America will include a trilateral meeting on Wednesday where Canadian, U.S. and Mexican officials will review their existing trade agreement. Notably, U.S. President Donald Trump has suggested that the he would prefer not to have accord, arguing that the U.S. would perform better with the so-called U.S.-Mexico-Canada trade deal.
U.S. futures advance
U.S. index futures climbed on Monday morning. S&P 500 futures were up 60 points, or 0.8%, while Nasdaq 100 futures rose 343 points, or 1.2%, by 07:29 ET. Dow Jones futures traded about 227 points, or 0.4%, higher in the same window.
The improvement in investor sentiment followed an Axios report indicating the United States and Iran had agreed to stop fighting over a strategic waterway and to resume negotiations in Doha. The report added that the two sides plan to meet on Tuesday in Qatar.
Over the weekend, U.S. forces carried out additional strikes against Iranian military and surveillance facilities after a tanker was struck in the Strait of Hormuz and commercial shipping again came under pressure. President Donald Trump warned that Washington could be forced to "militarily complete the job" if attacks continued.
According to reports, Iran responded with missile and drone strikes targeting U.S. military facilities in Bahrain and Kuwait and warned it could suspend talks if further U.S. strikes occurred. The diplomatic outreach follows a June 17 memorandum of understanding between the two countries aimed at ending several weeks of escalating conflict in the Gulf.
Oil and gold move
Oil prices were relatively steady in cautious trading on Monday after sliding nearly 10% the prior week to levels described in the market as near pre-war prices.
Gold retreated as renewed flare-ups in the Middle East lifted concerns about inflation and reinforced expectations for sustained higher interest rates, a dynamic that can weigh on non-yielding assets such as bullion. At the same time, the U.S. dollar strengthened, which typically makes gold more expensive for holders of other currencies and added to the metal's decline. The dollar has been seen as a relative safe haven through the Iran conflict, underpinned in part by views that the U.S. economy - as a major energy exporter - could be less vulnerable to recent oil-price spikes.
Technology and AI-linked names in focus
Palantir Technologies edged higher in premarket trading, alongside gains in Nvidia, Intel and Micron, suggesting some stabilization among stocks tied to artificial intelligence themes.
Last week, Wall Street writhed under rotation away from high-growth technology stocks amid concerns over stretched valuations and waning momentum for AI-related names. The benchmark S&P 500 fell 2.0% while the Nasdaq Composite plunged 4.6%, recording its worst weekly drop in more than a year.
Sentiment was further shaken by a media report positing that OpenAI may need to delay its widely anticipated initial public offering from this year to 2027. Analysts at Vital Knowledge also cited what they called "poor price action" in a debt issuance by SpaceX soon after that company's record-setting IPO, noting the episode raised questions about investor appetite for both equity and debt tied to the industry. Those analysts added that such developments have created worries over whether the capital expenditure trajectory might slow, as much of the infrastructure build-out has been financed by capital markets while spending has outpaced operating cash flow.
Market calendar and liquidity considerations
Traders will be parsing a busy economic calendar this week, including U.S. labor market data and a quarterly update from Nike. With the U.S. Independence Day market holiday on Friday, trading volumes could be lighter than usual, though developments in the Middle East are likely to remain a central determinant of risk sentiment across global markets.
Selected corporate moves
In individual equities, Comcast shares jumped after the media and telecommunications conglomerate said it intends to execute a tax-free spinoff of NBCUniversal and Sky.
Other individual movers noted in premarket activity included the AI-related names already mentioned, along with broader index movements reflected by futures activity.
Bottom line
Early Monday trading saw Canadian futures drift higher amid reports of a de-escalation between the U.S. and Iran and a planned diplomatic meeting, a development that counterbalanced pressure on gold and left markets watching oil, tech names and an active economic calendar for further direction.