Canadian equity futures slipped on Wednesday as trade frictions between Ottawa and Washington weighed on sentiment, offsetting overnight gains in major U.S. indexes.
By 06:52 ET, the S&P/TSX 60 index standard futures contract fell 2 points, or 0.1%, after the S&P/TSX Composite Index closed Tuesday at a record 36,957.63, surpassing the prior peak set on August 13. U.S. stock futures showed modest declines: the S&P 500 futures were down 7 points, or 0.1%, while the Nasdaq 100 futures declined 66 points, or 0.2%. The Dow Jones futures were little changed.
The pullback in Canadian markets followed Canada’s announcement of up to 50% tariffs on approximately 700 U.S. products, targeting roughly $20 billion in annual imports. The measures are scheduled to take effect on September 8 and represent a reciprocal response to U.S. duties imposed on Canadian exports over the weekend. Negotiations between the two countries have yet to yield a resolution.
Oil prices also softened, with Brent crude futures dipping below $90 per barrel. The decline reflected broader risk-off sentiment amid geopolitical uncertainty, though no immediate escalation in Middle East tensions was cited by traders.
Attention in U.S. markets turned to Nvidia’s fiscal second-quarter earnings, due after the close. Analysts expect revenue to nearly double year-over-year to $92.18 billion, marking the chipmaker’s fastest growth rate in seven quarters, according to LSEG data. Investor focus remains on the sustainability of AI infrastructure spending and the transition from current-generation Blackwell chips to next-generation Vera Rubin processors.
Premarket trading in U.S. shares showed sharp declines for Intuit, which fell more than 12% following its results. Earlier in the week, Nvidia rose 2.2% and Advanced Micro Devices gained 4.9%.
U.S. economic data due before the open included the Personal Consumption Expenditures (PCE) price index, with the core measure expected to rise 0.2% month-over-month in July, up from 0.1% in June. On an annual basis, core PCE is projected to hold steady at 3.3%, remaining above the Federal Reserve’s 2% target. Boston Fed President Susan Collins cautioned in a recent essay that further sustained disinflation may be necessary before policy easing becomes appropriate.
Geopolitical developments included unverified reports of a potential U.S.-Iran ceasefire and discussions on temporary shipping routes through the Strait of Hormuz, though no definitive agreements were confirmed.
