Canadian stock futures inched higher on Friday as oil prices eased and traders awaited the release of domestic employment data. By 06:35 ET, the futures had risen by 6 points, or 0.3%. The previous day, the main index gained 0.3% to close at 35,145.38, recovering from its lowest level since July 20. Analysts expect the unemployment rate to rise to 6.5% from 6.4%, with employment change projected to recover to a gain of 6,100 roles after August's loss of 41,700.
U.S. stock futures were also broadly higher, though tech stocks faced pressure due to conflicting reports about OpenAI's revenue outlook. The Financial Times reported OpenAI's annualized revenue was approaching $50 billion, below earlier projections of $70 billion. However, Bloomberg later confirmed the $50 billion figure, with expectations for growth to exceed $70 billion by December. OpenAI is reportedly considering a $30 billion fundraising round at a valuation of around $1.4 trillion. Chipmakers like Nvidia, Advanced Micro Devices, and Micron Technology saw significant declines.
Oil prices fell amid easing geopolitical tensions, with Brent crude trading down 1.1% at $103.16 a barrel and WTI crude declining 0.7% to $90.89. The drop followed former President Donald Trump's statement that the U.S. would not attack Iran before the midterm elections. Gold prices rose 1.1% to $4,179.42 per ounce, benefiting from softer oil prices and a weaker U.S. dollar. The Federal Reserve's interest rate outlook remained a key focus, with St. Louis Fed President Alberto Musalem suggesting further tightening may be needed to curb inflation.
U.S. Treasury yields, which have climbed to multi-decade highs, continued to rise on inflation fears and concerns over AI infrastructure spending and public debt. The dollar's rally paused, though analysts at ING cautioned that drops may be short-lived. The earnings season is set to begin next week, with major Wall Street lenders due to report.