TSX futures edge higher after index logs biggest gain in three weeks

Investing.com - Futures linked to Canada’s main stock exchange inched up on Thursday, after the index notched its biggest rally since October 14 in the prior session.

By 07:32 ET (12:32 GMT), the S&P/TSX 60 index standard futures contract had gained 2 points, or 0.1%.

On Wednesday, the S&P/TSX composite index rose by 1.1% to 30,103.48, rebounding from a slump earlier in the week which brought the index hit its lowest closing level in almost six weeks.

The materials sector, which includes metal mining shares, gained 2.7%, underpinning by a slight recovery in gold prices and an uptick in oil prices.

A jump in shares of electronic gear company Celestica also drove the technology segment up 2.9%.

U.S. futures point higher

U.S. stock futures steadied Thursday, with investors digesting more corporate earnings as well as warily watching the Supreme Court hearing on President Donald Trump’s tariffs.

At 07:33 ET, Dow Jones Futures were mostly unchanged, S&P 500 Futures rose 11 points, or 0.2%, and Nasdaq 100 Futures gained 35 points, or 0.1%.

The main averages on Wall Street climbed on Wednesday, with mega-cap technology stocks in particular notching gains, prompting the NASDAQ Composite to close 0.7% higher. The uptick helped to tamp down emerging fears over the sustainability of heightened stock valuations, especially in the artificial intelligence-driven tech sector.

Tech earnings continue to attract attention

The quarterly earnings season continues Thursday, with the tech sector remaining in focus. Even with the previous session’s modest recovery. worries about lofty tech valuations linger after warnings from top Wall Street bank executives about the sustainability of the recent rally.

Shares of Qualcomm sank in premarket trading after the chip designer unveiled that it may lose some business from top customer Samsung Electronics next year.

The announcement overshadowed current-quarter sales and profit forecasts from the chip designer that surpassed Wall Street expectations thanks in large part to demand for premium smartphones.

On the flip side, fellow chip technology provider Arm Holdings (NASDAQ:ARM) gained premarket after its fiscal third-quarter outlook surpassed estimates, buoyed by heavy recent AI spending throughout the tech industry.

Elsewhere, Snap stock surged after the social media firm beat quarterly revenue estimates and narrowed its net loss, and ride-hailing platform LYFT gained after reporting higher quarterly revenue and returning to profitability.

Thursday also sees the release of more earnings, with travel stocks Expedia (NASDAQ:EXPE) and Airbnb (NASDAQ:ABNB) among those reporting their latest financial results.

Tesla shareholders are also expected to decide today on a massive compensation package for CEO Elon Musk.

Are Trump’s tariffs legal?

Also attracting investors’ attention was the Supreme Court examining whether Trump’s sweeping tariffs violated U.S. law.

On Wednesday, the high court began hearing oral arguments on Trump’s usage of the 1977 International Emergency Economic Powers Act, or IEEPA, as legal backing for the levies. The matter has been brought before the Supreme Court after lower courts ruled that the president had surpassed his authority by employing the measures.

The case, which could reshape presidential trade powers, carries major implications for U.S.-China relations and global markets.

Crude rebounds

Oil prices ticked higher, rebounding after recent sharp losses as expectations of a supply glut and softening demand presented a weak outlook for crude.

Brent futures gained 0.7% to $63.95 a barrel and U.S. West Texas Intermediate crude futures rose 0.9% to $60.11 a barrel.

Both contracts slid some 1% each on Wednesday, having fallen for a third straight month in October.

Expectations of more disruptions in U.S. fuel demand, amid a prolonged government shutdown, weighed on crude, as did persistent bets that a supply glut will form in the coming year.

Gold holds on to gains

Gold prices rose, after climbing over 1% on Wednesday, as a slight retreat in the U.S. dollar and uncertainty surrounding a prolonged U.S. government shutdown helped underpin sentiment.

Spot gold was last up 0.8% at $4,009.34 per ounce, while U.S. gold futures edged up 0.6% to $4,018.40.

The yellow metal jumped 1.3% in the previous session as a global risk-off mood gripped markets amid growing fears of a stock market bubble.