Futures associated with Canada’s primary stock gauge were subdued on Tuesday as investors balanced geopolitical developments in the Middle East with new U.S. inflation figures.
By 09:00 ET (13:00 GMT), the standard futures contract for the S&P/TSX 60 was essentially flat.
The Toronto Stock Exchange’s S&P/TSX composite index rose 0.18% to 34,138.88 on Monday, marking its highest close since April 21, driven largely by gains in oil and metal-related shares.
U.S. futures and the inflation snapshot
Across the border, U.S. futures moved lower on Tuesday. At 08:38 ET, Dow futures were down marginally, S&P 500 futures were off about 0.3%, and Nasdaq 100 futures were down roughly 0.8%.
Market attention centered on the April consumer price index released by the U.S. Labor Department’s Bureau of Labor Statistics. The headline CPI rose 0.6% month-over-month and 3.8% year-over-year, compared with consensus estimates of 0.6% and 3.7%, respectively. Measures that strip out food and energy showed core CPI climbing 0.4% month-over-month and 2.8% year-over-year, versus expectations of 0.3% and 2.7%.
Analysts watching the data were particularly attentive to any signs that the energy shock was spilling over into broader goods prices beyond gasoline.
Equity drivers and investor narrative
Equities on Wall Street had registered gains in the previous session, supported by continued strength in semiconductor-related stocks. That sector has benefited from sustained enthusiasm around artificial intelligence, which has persisted despite an environment of prolonged geopolitical friction.
Michael Brown, Senior Research Strategist at Pepperstone, noted in a market commentary that equities appeared to have moved beyond reacting to every geopolitical headline. Instead, he identified a prevailing bullish narrative centered on robust earnings growth and a resurgence of AI-driven optimism as the primary engine behind risk asset appreciation.
Within that backdrop, the S&P 500 is expanding at its fastest year-on-year rate since the fourth quarter of 2021 and has recorded several record highs so far in 2026.
Geopolitical tensions and possible military escalation
Tensions between the United States and Iran remained a focal point. U.S. President Donald Trump told reporters on Monday that a ceasefire between Washington and Tehran was on "massive life support" after he rejected Iran’s response to an American peace proposal. He described Iran’s counteroffer as "unacceptable" and later called it "a piece of garbage" that he did not feel warranted full review.
There were signs that brinkmanship was rising. Reports indicated that, frustrated with stalled negotiations, Trump was seriously considering restarting major combat operations. Some observers suggested that his upcoming trip to China and a meeting with Chinese President Xi Jinping could potentially help break the impasse, with China possibly acting as a guarantor for any long-term settlement given its role as a major importer of Iranian crude.
With uncertainty persisting and the Strait of Hormuz largely closed to tanker traffic, oil prices climbed again. Brent crude futures were last reported higher by 3.2% at $107.56 a barrel, while U.S. West Texas Intermediate futures rose 3.3% to $101.30 a barrel. Prices remain significantly above pre-conflict levels, feeding concerns about an inflationary surge that could weigh on global growth.
Commodities and currency moves
Gold reversed lower even as oil pushed higher. The rebound in oil has constrained bullion’s upside because investors fear a sustained increase in energy costs could stoke inflation and compel the Federal Reserve to keep interest rates higher for longer. Higher policy rates reduce the attraction of non-yielding assets like gold.
Concurrently, the U.S. dollar firmed as market participants treated the greenback as a relative safe haven amid geopolitical uncertainty. Some analysts argued that the United States’ position as a major energy exporter could provide a degree of insulation from a wider energy shock, a factor that further weighed on bullion. A stronger dollar also makes gold more expensive for purchasers using other currencies.
Select corporate movers in U.S. premarket trading
In individual stock action, GameStop shares plunged in U.S. premarket trading after eBay rejected GameStop’s $56 billion takeover proposal, citing concerns about how the transaction would be financed. eBay’s shares fell as well in reaction to the market-moving development.
Elsewhere, Aramark reported fiscal second-quarter revenue that exceeded expectations, lifting that stock. Hims & Hers Health saw its shares tumble after reporting lower-than-anticipated first-quarter revenue and a surprise loss following changes to its weight-loss product lineup.
Outlook and market implications
Markets entered the session balancing higher energy-driven inflation risks against ongoing positive momentum in technology and AI-linked earnings. The interplay between rising oil, a firmer dollar, and mixed corporate results left futures muted as participants awaited further signals from economic data and geopolitical developments.