Summary: Futures on Canada’s main equity gauge ticked up on Tuesday as higher precious-metals prices lent support to the commodity-heavy market. Traders adopted a cautious stance ahead of central bank decisions in the U.S. and Canada later in the week, while U.S. futures showed divergent moves and corporate earnings began to roll in.
Futures contracts linked to the S&P/TSX 60 were trading higher early Tuesday, with the standard futures contract having gained 4 points, equivalent to a 0.2% increase, by 07:55 ET (12:55 GMT). The prior session had seen the broader S&P/TSX composite retreat 0.16% to 33,093.22, pulling back from a recently recorded all-time high.
Part of Monday’s decline in the Canadian market was attributed to weakness in Bombardier shares after a twin-engine jet produced by the aerospace group crashed in Maine over the weekend. At the same time, rising gold and silver prices helped underpin the commodity-sensitive index, partially offsetting the drag from an additional tariff threat announced by U.S. political leadership.
U.S. futures mixed ahead of policy decisions
Across the border, U.S. stock-index futures were trading on both sides of unchanged. At 08:08 ET, Dow Jones futures were quoted down 262 points, or about 0.5%, while S&P 500 futures were up 17 points, or 0.2%, and Nasdaq 100 futures were higher by 162 points, or roughly 0.6%.
Equities had moved higher in the session before, with the S&P 500 and the NASDAQ Composite each notching a fourth straight gain and touching their highest readings in over a week. Both indexes were on their longest positive run since December.
Central banks in focus
Market participants entered a wait-and-see mode ahead of the U.S. Federal Reserve’s two-day policy meeting, which concludes on Wednesday. That caution helped blunt the market impact of a fresh tariff announcement that raises certain South Korean imports to 25% from 15% - a move framed by the U.S. administration as a response to legislative developments in Seoul.
Consensus expectations are that the Fed will hold interest rates steady at this meeting. Policymakers are weighing a combination of easing financial conditions, softer inflation trends and signs of gradual moderation in the labour market. Recent data have further supported the view that the Fed is unlikely to telegraph immediate rate cuts, as officials seek firmer evidence that inflation is moving sustainably toward their 2% objective.
Investors will also be scrutinizing any commentary about the likely timing and pace of future rate cuts and watching closely for discussion about leadership at the central bank, given that Jerome Powell’s term is scheduled to end in May. On the potential succession, analysts at Vital Knowledge noted that "Rick Rieder’s odds of replacing Powell have shot higher in recent days following some flattering press reports." The same note added that, "regardless of who gets the nod, Fed independence will remain under threat for at least the balance of the Trump 2.0 administration as the central bank is set to continue acting as a financial scapegoat." Rieder is identified in the note as a senior manager at BlackRock.
Earnings season ramps up
Beyond central-bank developments, attention is turning to corporate results. More than 90 S&P 500 firms were scheduled to report this week. So far this quarter, earnings season has shown strength: roughly three in four companies in the S&P 500 have beaten expectations, according to FactSet data cited in market commentary.
While anticipated reports from major technology firms such as Meta Platforms, Tesla, Microsoft and Apple are expected to dominate headlines later in the week, a slate of notable results landed before the U.S. open on Tuesday. UnitedHealth, RTX Corp, Boeing and General Motors all issued quarterly results ahead of trading, alongside shipping company United Parcel Service.
Separately, shares of several large health insurers, including Humana and CVS Health, moved sharply lower in premarket trading after the U.S. administration proposed a near-flat update to payment rates for Medicare Advantage plans - an outcome that disappointed market participants who had expected a more generous increase.
Commodities: gold and oil move higher
Precious metals were among the notable movers. Spot gold jumped 1.6% to $5,087.54 an ounce, while April gold futures were cited down 0.1% at $5,120.91/oz. Spot gold had hit an all-time peak of $5,111.11/oz on Monday. The metals rally was attributed to worries over trade policy and broader geopolitical strains, as well as a defensive stance ahead of the Fed meeting.
Crude oil prices advanced on Tuesday, supported in part by supply disruptions tied to extreme winter weather in the United States. Brent futures rose 0.5% to $65.07 a barrel, and U.S. West Texas Intermediate futures gained 0.6% to $61.01 a barrel. The severe storm that swept across the country placed stress on energy infrastructure and power systems; U.S. oil producers were estimated to have lost up to 2 million barrels per day, or roughly 15% of national production, over the weekend.
Outlook
With central-bank meetings looming and a busy earnings calendar underway, market participants appear focused on incoming data and corporate updates that could shape expectations for monetary policy and growth. Commodity price movements are providing support to resource-sensitive benchmarks such as Canada’s TSX, while geopolitical and policy risks continue to keep traders alert to sudden shifts in sentiment.
Note: All figures and company results referenced above reflect the movements and reports cited by market participants and do not include any additional analysis or projection beyond those facts.