Canadian equity futures edged down on Wednesday as trade frictions between Ottawa and Washington intensified, overshadowing gains in the broader market.
S&P/TSX 60 index futures fell 2 points, or 0.1%, to 1,190.60 at 06:52 ET, following Tuesday's record close for the S&P/TSX composite at 36,957.63. The decline reflected investor caution ahead of Canada's planned counter-tariffs, set to take effect on September 8, targeting roughly 700 U.S. products worth an estimated $20 billion annually. The measures mirror 50% duties already imposed by the U.S., escalating a bilateral trade dispute that has weighed on risk sentiment.
North American equity benchmarks showed mixed signals in premarket trading. Dow futures were little changed, while S&P 500 and Nasdaq 100 futures slipped 0.1% and 0.2%, respectively. On Tuesday, the Dow Jones Industrial Average and S&P 500 each rose 0.3%, with the Nasdaq Composite gaining 0.7%, supported by gains in technology shares.
Technology stocks led advancers in premarket U.S. trading, with Advanced Micro Devices surging 4.9%. Nvidia, however, was poised for a more modest gain of 2.2% ahead of its quarterly earnings report after the bell. Analysts expect revenue to nearly double year-over-year to $92.18 billion, according to LSEG data cited by Reuters, underscoring the chipmaker's central role in the AI boom. Intuit fell more than 12% in premarket trade following its quarterly update.
Oil prices extended declines, with Brent crude futures dipping below $90 per barrel to trade at $86.70, while gold prices slipped after a three-week winning streak. The moves came as geopolitical developments in the Middle East added to market volatility. Iran and Oman agreed on a temporary shipping route through the Strait of Hormuz, though Iranian officials reiterated that full reopening hinges on U.S. compliance with a June framework ceasefire deal.
Federal Reserve policy remains a key focus, with Boston Fed President Susan Collins warning in an essay that sustained disinflation may necessitate tighter monetary policy. Investors will also monitor July's core personal consumption expenditures price index, expected to rise 0.2% month-over-month, keeping inflation pressures in view as the central bank navigates its policy path.
