TSX futures slip as AI worries and elevated oil prices weigh
SPY•December S&P/TSX futures fell 0.8% as US technology results raised concerns about AI costs and oil prices rose more than 2%.
1. Futures decline
December futures on the S&P/TSX index were down 0.8% at 7:35 a.m. ET on Friday. Results from large US technology companies fueled concerns about rising AI costs, while higher oil prices weighed on sentiment.
2. Oil and rate outlook
Oil prices rose more than 2%, putting them on track for a fourth consecutive monthly gain after a tanker attack in the Strait of Hormuz highlighted supply risks. Spot gold fell 1% as higher oil prices and strong US inflation data strengthened the case for another Federal Reserve rate hike in December. Traders were pricing in about a 72% chance of a hike before year-end.
3. Company and policy news
In US premarket trading, Amazon fell 6.8% after reporting substantial third-quarter cash burn, while Intel dropped 25.7% after warning it would burn cash this year amid a faltering PC market. Air Canada said it would cut some capacity in the first quarter of 2027 as higher jet fuel prices pressured margins. Canada’s main stock index edged lower on Thursday, dragged by mining and technology shares and hot US inflation data.
