Futures tied to Canada's main stock index edged lower on Tuesday, pulling back from the prior session's record high, as investors turned cautious ahead of key economic data that could influence Bank of Canada's interest-rate path later this month.
The TSX Composite Index climbed 129.65 Friday to end the week at 28,564.45. On the week, the index gained 231 points, or 0.8%.
The Canadian dollar was off 0.12 cents to 72.61 cents U.S.
Futures retreated 0.2% Tuesday after closing at a record high on Friday.
Markets on both sides of the border were closed Monday for Labour Day.
On the economic front, the Markit Canada Manufacturing PMI for August is due out at 9:30 a.m. EDT
ON BAYSTREET
The TSX Venture Exchange regained 12.19 points, or 1.5%, to 829.57. On the week, the index perked nearly 26 points, or 2.3%.
ON WALLSTREET
U.S. stock futures were lower Tuesday, with investors weighing the latest developments on the trade front to kick off a seasonally poor month for equities.
Futures for the Dow Jones Industrials plunged 259 points, or 0.6%, to 45,342.
Futures for the S&P 500 sank 46 points, or 0.7%, to 6,426.50
Futures for the NASDAQ subtracted 214.75 points, or 0.9%, to 23,246.50.
Investors took profits on bull market winners with the unofficial end of the summer season. Nvidia shares were off by 1.5%. Palantir shed 2% to pace losses in Big Tech shares.
Those moves come after a federal appeals court on Friday ruled that most of President Donald Trump’s global tariffs are illegal. The U.S. Court of Appeals for the Federal Circuit determined in a 7-4 ruling that only Congress has the authority to apply sweeping levies. Trump called the decision “Highly Partisan” and has said that he will appeal the ruling to the U.S. Supreme Court.
Those developments could weigh on sentiment to start a new trading month. September is historically the worst month for equities, with the S&P 500 averaging a 4.2% drop over the last five years, and falling more than 2% on average over the last 10.
Adding to uncertainty are questions around the future of Federal Reserve independence, given the Trump administration’s efforts to oust central bank officials. A court hearing that Trump be temporarily barred from firing Lisa Cook ended Friday without a ruling. This week, Stephen Miran, a Trump nominee, has his Senate Banking Committee hearing scheduled on Sept. 4.
Wall Street is coming off a strong month for the stock market. In August, the 30-stock Dow advanced more than 3%. The S&P 500 rose nearly 2%. The tech-heavy NASDAQ ended the month 1.6% higher.
It was the fourth month in a row of gains for the S&P 500. The big event traders are waiting for is the release of August’s jobs report on Friday and how it will influence the Fed’s interest rate decision coming mid-month.
In Japan, the Nikkei 225 edged up 0.3% Tuesday, while in Hong Kong, the Hang Seng skidded 0.5%.
Oil prices were boosted $1.72 to $65.73 U.S. a barrel.
Gold prices jumped $35.30 at $3,451.40 U.S. per ounce.
