Canada’s S&P/TSX composite index declined on Tuesday as market participants monitored a pullback in gold prices and awaited domestic inflation figures for January. The index was down roughly 200 points, or 0.6%, at 32,867.23, after being closed on Monday for a holiday. On Friday the index had rallied 1.9% to 33,073.71, trimming losses seen earlier in the week as a softer-than-expected U.S. inflation print had fostered hopes for eventual policy easing from the Federal Reserve.
Precious metals underperformed on Tuesday, with spot gold and silver retreating while the U.S. dollar strengthened. Market participants noted that trading volumes were thin in many areas as Lunar New Year holidays kept exchanges shut in several large Asian markets, which contributed to the moves in metal prices.
Much of the attention in Canada was focused on incoming inflation data for January. Economists expect consumer prices to have risen by 0.1% month-on-month and 2.4% year-on-year, data that will be closely watched for signals about domestic price pressures and the potential path for Bank of Canada and global central bank policy.
U.S. markets subdued after holiday
U.S. stock indices were relatively muted as investors returned from a public holiday and digested a slate of economic indicators and corporate earnings. The S&P 500 was little changed at 6,838.68 points after earlier sliding as much as 0.9%. The NASDAQ Composite, weighed down earlier, was also little changed at 22,538.58 points after falling as much as 1.3%. The Dow Jones Industrial Average was up about 0.1% at 49,569.22 points.
Major U.S. averages came into the new trading week off a losing week as market participants weighed questions about how newly released artificial intelligence models might affect various industries and whether heavy infrastructure spending on AI will translate into meaningful returns for mega-cap technology firms.
Fed minutes, other data and central-bank cues in focus
Investors are watching a packed calendar for further direction on interest rates. The minutes from the Federal Reserve’s January meeting are due on Wednesday, following the decision in late January to leave interest rates unchanged. Several Fed officials are also scheduled to speak in the coming days, offering additional commentary.
Outside of the Fed minutes, industrial production and durable goods figures are due on Wednesday, and December trade data is expected on Thursday. The PCE price index - the Fed’s preferred inflation gauge - is scheduled for Friday and is likely to be a decisive piece of information for policymakers and markets seeking clarity on the interest-rate outlook.
Consumer price index data for January, released late last week, showed a mild cooling in headline inflation and an easing in core CPI in line with expectations, according to the data referenced by investors.
Corporate earnings spotlight: Palo Alto Networks and others
Corporate results are also set to shape sentiment. Palo Alto Networks (PANW) was due to report quarterly results after the U.S. market close, offering a chance to assess momentum in tech names facing competition from newly released AI models. The California-based cybersecurity firm had raised full-year revenue and profit forecasts in November, citing a surge in demand for digital security solutions. The company also announced a $3.35-billion acquisition of cloud management and monitoring business Chronosphere and outlined plans to integrate the unit into its Cortex AgentiX platform, which would allow Palo Alto’s AI agents to use Chronosphere’s data to detect performance issues and diagnose root causes.
Other companies scheduled to report later in the week include DoorDash, Walmart and Wayfair, which will add to the corporate news flow and could influence technology, consumer and retail sector sentiment.
Energy markets mixed as diplomatic talks take center stage
Brent crude traded in a narrow range as traders monitored planned talks between U.S. and Iranian ministers in Geneva on nuclear enrichment issues. Brent futures for April were last up 0.1% at $68.73 a barrel, while West Texas Intermediate rose 1.4% to $63.65 a barrel. The negotiations were being watched amid elevated military tensions in the Middle East, as the U.S. moved additional forces into the region.
Precious metals decline
Gold and silver prices fell on Tuesday as markets awaited U.S. economic releases later in the week. At 07:12 ET, spot gold was reported down 1.1% at $4,937.25/oz, and April gold futures had declined 1.8% to $4,955.96/oz. Spot silver slid 2.0% to $75.1245/oz, while spot platinum inched up 0.1% to $2,022.78/oz. Market participants attributed part of the move to subdued liquidity caused by Asian holidays alongside the broader economic data calendar.
Overall, the market tone was cautious with investors awaiting a series of economic indicators and central-bank communications that could clarify the path for interest rates, while commodity markets responded to a mix of geopolitical developments and holiday-driven volume effects.