Canada's TSX stock index futures dip slightly after reaching a historic high

Investing.com - On Friday, futures linked to Canada’s main stock indices declined slightly after the index hit a record high in the previous trading day.

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As of 06:48 AM Eastern Time (19:48 Beijing Time), the S&P/TSX 60 index futures fell by 3 points, or 0.2%.

On Thursday, the S&P/TSX Composite Index rose 1.1% to 34,501.96, surpassing the record high set earlier this week. Strong bank earnings supported the key financial sector, and rising gold prices also contributed.

Entering the last trading day of the week, spot gold retreated but still aims for a seventh consecutive month of gains. Silver and copper prices also increased.

U.S. Futures Decline

U.S. stock index futures fell, indicating a weak finish to the week, with market focus on the technology sector as investors await key inflation data.

As of 07:02 AM Eastern Time, Dow futures dropped 364 points, or 0.7%; S&P 500 futures declined 39 points, or 0.6%; Nasdaq 100 futures fell 155 points, or 0.6%.

On Thursday, major Wall Street indices closed mixed, with the S&P 500 down 0.5%, the tech-heavy Nasdaq Composite down 1.2%, and the Dow Jones Industrial Average up slightly less than 0.1%.

The Nasdaq is down 2.5% this month, while the S&P 500 has fallen 0.4% after continued declines in tech stocks. The Dow has gained 1.2% this month, benefiting from a shift of funds into non-tech sectors.

Nvidia, the world’s most valuable company, became the biggest drag on Wall Street on Thursday. Despite strong quarterly earnings, its stock fell over 5%.

Investors’ concerns over shareholder returns, especially after a significant increase in cash reserves, pressured the stock. Profit-taking after a strong rally before earnings reports was also a factor.

Meanwhile, despite Salesforce issuing a disappointing annual revenue forecast, its stock rose. However, Vital Knowledge analysts said the company’s performance “was not worse than expected.”

Netflix Declines to Increase Offer for Warner Bros.

Netflix is in focus, surging over 6% pre-market after announcing it will not raise its acquisition bid for Warner Bros.

Previously, Warner Bros. deemed Paramount’s offer of $31 per share as a better option.

Netflix said that matching Paramount’s latest bid “no longer makes financial sense.”

However, if Warner chooses Paramount, the streamer will receive a $2.8 billion termination fee. Warner shareholders will vote on Netflix’s acquisition proposal on March 20.

Netflix’s refusal to pursue Warner signals the possible end of one of the largest high-profile media bidding wars. The streamer and Paramount had been competing actively for Warner, whose studio assets and popular franchises are highly attractive.

Additionally, Block’s stock soared 18% after the payments company announced plans to cut over 4,000 jobs, about half of its workforce, as part of a restructuring to fully embed AI into its operations.

CoreWeave fell over 10% after reporting losses that exceeded expectations, with investors uneasy about its forecast for increased capital expenditure on cloud infrastructure.

January Producer Price Data Coming Soon

On the economic front, investors await the release of January’s Producer Price Index (PPI), a measure of wholesale inflation, later today.

Economists expect the overall reading to increase 0.3% month-over-month, with core PPI (excluding energy and food prices) also expected to rise 0.3%.

Chicago Fed President Goolsbee predicts more rate cuts this year but warns the Fed should be “cautious” as easing could lead to overheating of the economy and inflation.

“I am confident that rates can be lowered a few more times by 2026,” Goolsbee said in an interview with Fox News. “I just don’t want to cut rates too early before we have clear evidence that inflation is returning to the Fed’s 2% target.”

Crude Oil Ends the Week Higher

Despite extended negotiations between the U.S. and Iran over Tehran’s nuclear program, easing concerns about potential hostilities disrupting supply, oil prices rose.

Brent crude futures increased 2.4% to $72.51 per barrel, and U.S. WTI crude futures rose 2.5% to $66.82 per barrel.

Negotiations over Iran’s nuclear ambitions concluded on Thursday without a clear agreement, but plans to resume talks are in place. Technical discussions are scheduled for next week in Vienna, according to Omani Foreign Minister Sayyid Badr al Busaidi, who posted on X after the Geneva meeting.

Gold Prices Steady

Gold prices remained stable and are poised for a strong February, supported by escalating geopolitical tensions and economic uncertainty driving safe-haven demand.

As of 06:15 AM Eastern Time, spot gold edged up 0.1% to $5,188.92 per ounce, and April gold futures increased 0.2% to $5,205.84 per ounce.

Gold has risen over 6% in February, rebounding from lows early in the month after speculative buying in gold quickly ended.

In early February, spot prices dipped to a low of $4,600 per ounce.