Canadian stock index futures edged higher on Friday, with the S&P/TSX Composite Index up about 0.5% to 36,550.15, despite a weekly decline of 0.49%. The advance followed a mixed session in U.S. markets, where the Dow Jones Industrial Average gained 1% to 53,276.81, the S&P 500 rose 0.4% to 7,674.39, and the NASDAQ Composite added 0.4% to 26,180.46, though all three benchmarks posted weekly losses.
Materials stocks led gains on the TSX, climbing 2.7% as Ivanhoe Mines surged 8.5%, Lithium Americas rose 6.4%, and Lundin Mining advanced 6.0%. The sector’s performance reflected broader commodity market strength, with Brent crude futures holding above $94 a barrel amid geopolitical tensions in the Strait of Hormuz and Iran.
Canada’s retail sales increased 0.6% in June, exceeding analyst expectations of a 0.4% rise and signaling resilience in consumer spending. The gain was driven by higher purchases at clothing and general merchandise stores, with retail sales accounting for roughly 40% of consumer spending—a key indicator of economic momentum.
U.S. Treasury yields extended their climb, with the 30-year yield reaching a 19-year high of 5.337% on Tuesday and the 10-year benchmark hitting a 52-week peak of 4.748%. The sell-off in longer-dated bonds followed the Federal Reserve’s July policy meeting, as investors reassessed inflation risks amid rising oil prices and concerns over substantial debt issuance by major tech firms to fund AI infrastructure investments.
Gold prices remained near three-month highs, supported by a weaker U.S. dollar and efforts by the U.S. Treasury to stabilize long-term borrowing costs. Meanwhile, markets are pricing in a roughly two-thirds probability that the Fed will hold its benchmark rate steady at 3.5% to 3.75% at its September meeting, ahead of the Jackson Hole Economic Policy Symposium later this month.
