Canada's TSX stock index futures rise, after the index hit a new high earlier

Investing.com - On Friday, futures linked to major Canadian stock indices rose slightly as investors closely watch upcoming U.S. economic data and gold prices increase.

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As of 06:08 AM Eastern Time (19:08 Beijing Time), the S&P/TSX 60 index standard futures contract rose by 5 points, up 0.3%.

On Thursday, the S&P/TSX Composite Index increased by 0.6%, closing at 33,594.98 points, reaching a new all-time high and surpassing the previous trading day’s recent peak.

Gold price gains drove the Canadian Materials sector up 1.3%, which includes metal mining companies, and lifted the overall commodity-heavy TSX index.

Concerns over potential conflict between the U.S. and Iran pushed oil prices higher and boosted Toronto’s energy sector.

U.S. Futures Show Mixed Trends

U.S. stock index futures are searching for direction as traders await key inflation and economic growth data.

As of 06:40 AM Eastern Time, Dow futures fell by 24 points, down 0.1%, while S&P 500 futures and Nasdaq 100 futures were largely unchanged.

Major Wall Street indices declined in the previous session, weighed down by ongoing Middle East geopolitical tensions and some disappointing corporate earnings reports.

So far this week, the broad S&P 500 is expected to rise by 0.6%, the tech-heavy Nasdaq Composite is set to end a five-week losing streak with a 0.6% gain, while the blue-chip Dow Jones Industrial Average is expected to decline by 0.2% during this period.

PCE Price Index and GDP Data in Focus

Before the release of two key economic reports later on Friday—December PCE Price Index and Q4 preliminary GDP—most investors remain cautious.

PCE data is the Federal Reserve’s preferred inflation indicator, with focus on the core figure, which is expected to remain above the Fed’s 2% annual target in December. This data could influence the Fed’s recent interest rate plans.

GDP data is expected to show the U.S. economy ending 2024 on a strong note, although growth is forecast to slow significantly from the previous quarter.

Despite ongoing signs of cooling consumer spending, lagging housing market performance, and sticky inflation, GDP growth has remained positive in recent quarters, supported by massive spending on artificial intelligence.

This trend is expected to continue into 2026, as so-called AI mega-corporations on Wall Street have committed to investing hundreds of billions of dollars in this emerging technology.

Concerns in the Private Credit Market

Additionally, the private credit market will be a focus, after Blue Owl Capital (NYSE:OWL) announced on Thursday it would sell $1.4 billion in assets and freeze a fund’s redemptions to control debt and repay shareholders—raising concerns about broader credit quality and recent stock market losses.

There is also growing worry about how much exposure lenders have to software stocks, as traders fear the emergence of new AI models could cause disruptions, putting software stocks under pressure.

Furthermore, investors will closely watch the Supreme Court, as this legal body may issue a highly anticipated ruling on the legality of President Donald Trump’s tariffs under the International Emergency Economic Powers Act.

Crude Oil Likely to Post Weekly Gains

Oil prices edged lower but are set to record their first weekly increase in three weeks amid escalating tensions between the U.S. and Iran, raising fears of disruptions to Middle Eastern supplies.

Brent crude futures fell 0.3% to $71.48 per barrel, while U.S. WTI crude futures declined 0.3% to $66.22 per barrel.

Both contracts remain near their highest levels since early August, with weekly gains expected to be around 6%.

On Thursday, Trump said that if Iran does not reach an agreement on its nuclear program within 10-15 days, “very bad things” will happen, increasing the likelihood of military action and keeping tensions high.

Any escalation involving Iran (OPEC’s main oil producer) could threaten oil flows through the Strait of Hormuz, a critical chokepoint for about one-fifth of global oil transportation.

Gold Rises

Gold prices rose slightly, marking a second consecutive day of gains as investors respond to escalating tensions between the U.S. and Iran.

As of 06:53 AM Eastern Time, spot gold increased by 0.5% to $5,020.47 per ounce, while U.S. gold futures rose by 0.8% to $5,038.80 per ounce.

Gold has surged significantly since midweek, reversing earlier declines amid renewed geopolitical anxiety.

However, trading volume remains light due to the Chinese market being closed for the Lunar New Year holiday.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.