TSX gains after CPI shows US inflation rose 3%
Investing.com - U.S. stock futures point up, as investors shrugged off uncertainty around an extended U.S. government shutdown that seems likely to lead to the postponed publication of key economic data. Markets will instead have to make do with a private measure of services sector activity. Elsewhere, shares of chip equipment maker Applied Materials (NASDAQ:AMAT) dipped in afterhours trading following a disclosure by the group that new U.S. export restrictions will dent its revenue.
1. Futures climb
U.S. stock index futures were higher on Friday, after Wall Street logged another session of record highs despite heightened uncertainty over an ongoing government shutdown and delayed payrolls data.
Technology stocks were the biggest boost to Wall Street, as persistent cheer over artificial intelligence supported shares in chipmakers. But overall gains were seen wearing thin as the shutdown in Washington appeared set to enter a third consecutive day.
S&P 500 futures had risen 16 points, or 0.2%, Nasdaq 100 Futures inched up by 68 points, or 0.3%, by 03:49 ET (07:49 GMT). Dow Jones futures also advanced by 101 points, or 0.2%.
2. Services ISM ahead
Due to the shutdown, investors will likely only have figures from the Institute for Supply Management gauging activity in the key U.S. services sector to parse through on Friday.
The shutdown has all but quashed hopes that the all-important monthly nonfarm payrolls report will be published as it was originally intended to be on Friday. The Federal Reserve has been keeping close tabs on labor market figures, with policymakers mulling over a potential series of rate reductions to help boost hiring and investment -- albeit at the risk of driving up inflationary pressures.
Still, the ISM’s non-manufacturing purchasing managers index for September could provide some insight into the effect of sweeping U.S. tariffs on a segment of the economy that accounts for a major bulk of total output.
The figure is tipped to edge down to 51.8, compared to 52.0 in August. A reading above 50 indicates expansion.
3. Applied Materials discloses new U.S. export restrictions
Applied Materials has said it expects new U.S. export restrictions to reduce its revenue by approximately $110 million in the fourth quarter of its current fiscal year and $600 million in fiscal 2026.
In a filing, the chip gear maker said the expansion of Washington’s restricted export list would make it harder to send some products abroad and supply specific parts and services to certain customers based in China.
On Monday, the U.S. Department of Commerce widened its blacklist to include majority-owned subsidiaries of publicly listed firms, as part of a bid to limit the circumventing of U.S. export rules through smaller units and affiliates.
Applied Materials did not offer details around which specific products or services will be impacted by the restrictions, nor did it identify the particular customers that will be hit by the changes.
Shares of Applied Materials fell by roughly 2.7% in extended hours trading.
4. Gold steadies
Gold prices were on track to post a seventh straight weekly increase, bolstered by hopes for further Fed interest rate reductions and concerns over an extended U.S. government shutdown.
Despite the worries that the shutdown will lead to the delay of many crucial economic indicators, markets remain largely persuaded that the Fed will slash interest rates again at its next policy meeting later this month.
Spot gold gained 0.2% to $3,864.40 an ounce, while gold futures for December increased by 0.5% to $3,887.22/oz by 04:00 ET.
Bullion, which tends to perform better in low rate environments, has jumped by roughly 47% so far this year.
5. Oil set for weekly drop
Oil prices climbed higher, but were still on track for their steepest weekly fall since late June due to market expectations that the OPEC+ producer group could hike output further.
Brent futures gained 1.1% to $64.78 a barrel, and U.S. West Texas Intermediate crude futures rose 1.1% to $61.16 a barrel.
Both benchmarks slid nearly 2% to their lowest level since early June in the previous session, and were poised to drop nearly 8% for the week.
Sentiment remains cautious after reports earlier this week suggested that the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, could increase production by as much as 500,000 barrels per day in November, three times the volume added this month.