Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Canada’s commodity-heavy main stock exchange pointed lower on Monday as investors gauged both sliding gold prices and hopes for a trade deal between the United States and China.
By 11:53 ET (15:53 GMT), the S&P/TSX 60 index had declined by 8 points, or 0.4%. The S&P/TSX composite index is down 0.6%.
The S&P/TSX composite index jumped by 0.6% to end at 30,353.07 on Friday, with traders shrugging off a renewed trade fight between the U.S. and Canada.
Over the weekend, U.S. President Donald Trump slapped an additional 10% tariff on Canadian goods on Saturday over his displeasure with a television advertisement sponsored by the Ontario government. Trump previously cited the ad, which features later U.S. President Ronald Reagan speaking against the use tariffs, as a reason to halt negotiations with Ottawa.
Attention is now a meeting between Trump and Chinese counterpart Xi Jinping later this week, with representatives from both China and the U.S. saying that a framework trade deal has been notched following negotiations ahead of the summit.
U.S. futures rise
U.S. stocks rose Monday, extending last week’s rally, as investors cheered growing expectations of a Federal Reserve rate cut and encouraging signs of progress in U.S.-China trade negotiations.
The Dow Jones is currently up 0.5%, the S&P 500 has gained 1%, and the Nasdaq 100 is trading 1.6% higher.
All three of the main stock indices posted record closing highs on Friday, fueled by cooler-than-anticipated inflation data, which reinforced expectations that the Fed will opt to slash interest rates at its two-day meeting.
Fed meeting looms; U.S.-China trade talks progress
Investor sentiment strengthened after data last week showed that U.S. consumer prices cooled more than expected in September, reinforcing bets that the Fed will cut rates at its two-day policy meeting concluding on Oct. 29.
The softer inflation print cemented expectations of a 25-basis-point cut, with markets now watching closely for signals on whether the central bank could ease further in the coming months.
"We continue to look for a 25bp rate cut [on Wednesday], with a further 25bp move in December and 50bp of cuts in early 2026," ING analysts said in a recent note.
Adding to the upbeat tone, U.S. and Chinese officials reached a “framework understanding” on key trade issues over the weekend at the ASEAN Summit in Kuala Lumpur.
Treasury Secretary Scott Bessent said both sides had agreed to defer fresh tariff threats and pause China’s planned restrictions on rare earth exports. The breakthrough sets the stage for U.S. President Donald Trump and Chinese President Xi Jinping to meet later this week to finalize an agreement.
“I think we’re going to have a deal with China,” Trump told reporters on Sunday.
Li Chenggang, China’s lead negotiator, said a "preliminary consensus" had been notched following a round of "candid and in-depth discussions."
Investors took these comments as signs that months of tariff tensions may finally ease, a development that has buoyed risk assets globally.
Big tech earnings in focus
Elsewhere, investors will also focus on corporate earnings, with five of the so-called “Magnificent Seven” tech giants set to report this week.
Microsoft, Meta Platforms, and Alphabet are due to release results on Wednesday, followed by Apple and Amazon on Thursday.
Investors will be watching for updates on AI investment, cloud demand, and consumer spending trends.
Keurig Dr Pepper starts this week’s parade of high-profile corporate earnings reports, with investors hunting for any fresh guidance from the beverage group, especially after rivals PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) forecast a benefit to revenue and income from a weaker dollar.
Gold drops
Gold prices fell, extending losses from last week as easing U.S.-China trade tensions eroded bullion’s safe-haven demand.
Spot gold slipped 3% to $3,988 per ounce and U.S. gold futures declined 3.2% to $4,004.14/oz.
The precious metal snapped a nine-week winning streak last week as traders took profits following record highs above $4,300/oz which were fueled by geopolitical concerns and expectations of monetary easing.
Crude edges higher
Oil prices have crept higher despite traders cheering signs of progress in U.S.-China trade talks, lifting worries about a major fallout between the two largest economies in the world.
Brent futures gained 0.2% to $65.30 a barrel and U.S. West Texas Intermediate crude futures climbed 0.3% to $61.70 a barrel.
Crude prices soared last week after the U.S. imposed fresh restrictions on Russia’s oil industry, this time targeting the country’s biggest oil firms.