Futures referencing Canada’s main equity benchmark were higher on Wednesday as traders positioned for a packed slate of corporate news and wrestled with renewed inflation concerns amplified by developments in the Middle East.
By 08:18 ET (12:18 GMT), the S&P/TSX 60 index standard futures contract had risen by 3 points, equivalent to a gain of about 0.2%.
On Tuesday, the Toronto Stock Exchange’s S&P/TSX composite index closed down 0.3% at 33,741.24, marking its lowest settlement since May 5. Shares of metal miners and consumer discretionary companies were among the largest drags on the composite that day.
U.S. stock futures also strengthened in early trading after the main averages on Wall Street fell in the previous session. The sell-off came as government bond prices slid sharply, a move that reflected investor concern that the protracted conflict with Iran could trigger a fresh wave of inflation globally and, consequently, provoke further central-bank interest rate increases.
In particular, the yield on the 30-year U.S. Treasury bond - often used as a barometer of market views on the long-term economic outlook - surged to levels not seen since the global financial crisis nearly two decades ago. Yields typically move inversely to bond prices.
That sharp move in government debt markets appeared to ease somewhat later, with U.S. Treasury yields slipping marginally from their intraday highs.
"Long-term inflation expectations remain anchored, but the near-term inflation path is still uncertain. Markets are still trying to gauge how large the next inflation wave will be," analysts at BCA Research said in a note.
Despite elevated concern over potential inflation, there remained some optimism that diplomatic or political channels could bring the U.S.-Iran conflict to a quicker resolution. U.S. President Donald Trump told lawmakers on Tuesday evening that the Iran war could end "very quickly," and said he had delayed planned fresh attacks at the request of three Gulf countries. Vice President JD Vance also expressed optimism in separate remarks, saying Tehran wanted to strike a deal.
Signals that shipping through a key oil chokepoint might be loosening weighed on crude prices. Two Chinese-flagged supertankers carrying oil departed the Strait of Hormuz on Wednesday, according to a Reuters report citing LSEG and Kpler shipping data. In addition, the South Korean-flagged Very Large Crude Carrier Universal Winner was also reported to be leaving the narrow waterway off Iran’s southern coast, which has been largely closed to tanker transit since late February amid the U.S.-Israeli war on Iran.
Oil prices fell on those reports, mirroring market hopes that constrained supply flows through the strait may be more fully restored.
Spot gold ticked higher, but its upside was limited by the jump in bond yields and a firmer U.S. dollar. Higher borrowing costs generally weigh on non-yielding assets such as gold, while a stronger dollar can make bullion more expensive for overseas buyers.
Market participants are also awaiting further insight into the Federal Reserve’s policy outlook when minutes from the Fed’s April meeting are released later in the day.
Corporate earnings were a focal point for investors as well, with Nvidia set to report quarterly results after the closing bell. The semiconductor heavyweight has become a key proxy for the broader artificial intelligence ecosystem, given the central role of its chips in powering advanced AI models.
Expectations for Nvidia’s performance remain elevated, reflecting continued large-scale spending by major technology firms to build AI infrastructure. However, the company faces concerns about competition from rival processors being developed by Alphabet’s Google and Amazon, as well as questions about whether the surge in AI-related spending and rising memory-chip costs are sustainable.
In premarket action ahead of the results, Nvidia shares were up about 1.7%. Other chip names were broadly steady.
Analog Devices also drew attention after saying it would acquire Empower Semiconductor for roughly $1.5 billion in cash, a move the company described as aimed at expanding its AI-focused power-management capabilities.
Retailers were closely watched for clues about consumer resilience in the face of geopolitical and economic headwinds. Target’s shares climbed after the big-box retailer doubled its full-year sales growth forecast. By contrast, Lowe’s shares slipped after the home-improvement chain warned about the state of the U.S. housing market.
Across sectors, market participants weighed the interplay between geopolitical risks, interest-rate trajectories, and company-specific developments as they positioned ahead of a potentially pivotal set of corporate reports and central-bank communications.
Key data points noted in market moves:
- S&P/TSX composite closed at 33,741.24, down 0.3% and at its lowest since May 5.
- S&P/TSX 60 futures were up 3 points, or about 0.2%, by 08:18 ET (12:18 GMT).
- Nvidia shares rose roughly 1.7% in premarket trading; Analog Devices announced a roughly $1.5 billion cash acquisition of Empower Semiconductor.