TSX futures rise amid upcoming U.S. jobs data, bond market volatility

Investing.com - Futures linked to Canada's main stock index edged higher on Friday, as investors geared up for key U.S. employment data and assessed ongoing fluctuations in the global bond market.

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By 06:09 ET (10:09 GMT), the S&P/TSX 60 index standard futures contract had risen by 5 points, or 0.2%.

The S&P/TSX composite index finished down by 0.2% at 35,154.76 on Thursday, notching its lowest closing level since July 20. A drop in metal mining shares weighed on sentiment, although an easing rout in bond yields around the world offered some support to equities.

U.S. stock index futures rose. By 06:33 ET, the Dow futures contract had ticked up by 200 points, or 0.4%, S&P 500 futures had climbed 32 points, or 0.4%, and Nasdaq 100 futures had advanced by 215 points, or 0.7%.

"[S]tocks are rallying so far this morning as investors take solace in yield stability [...] and Brent softness," analysts at Vital Knowledge said in a note. Brent crude futures, the global oil benchmark, were last down by 2.4% at $99.83 a barrel, possibly offering some relief to traders wary of energy-fueled inflationary pressures.

The main averages on Wall Street eked out gains in the prior session, as an initial selloff in debt markets eased, leading to a decline in yields that had a positive impact on stocks.

Quarterly results from chipmaker Micron also spurred on equities. The group issued strong guidance, while executives said artificial intelligence memory chip supply and demand conditions will be much tighter in the next two fiscal years compared to the 2026 financial period.

Nonfarm payrolls data for September is due on Friday morning. The U.S. economy is tipped to have added 89,000 roles last month, versus 162,000 in August. The unemployment rate, meanwhile, is seen coming in at 4.1%, matching August's level.

Any signs of labor market strength could give the Federal Reserve more headroom to hike interest rates, especially with inflation above the central bank's 2% annual target. In theory, raising rates can quell inflation, albeit at the risk of denting growth and labor activity. Last month, the Fed lifted rates by 25 basis points, its first hike in almost three years.

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Dallas Fed President Lorie Logan said on Thursday evening that interest rates will need to rise by at least 50 basis points to curb sticky inflation. Separately, Fed Governor Lisa Cook warned that artificial intelligence-driven inflation was a major risk for 2027.

Still, Minneapolis Fed President Neel Kashkari said that while he expects more rate hikes will be needed to cap inflation going into 2027, he was unsure whether the next hike would come later in October.

Earlier this week, the personal consumption expenditures price index data for August showed inflation softened slightly, but stayed well above the Fed's 2% annual target. The PCE reading is one of the Fed's preferred inflation metrics.

Markets sharply pared bets on an October hike following the August PCE data, although expectations remained for at least one more rate hike before the end of the year.

Gold prices, which often move on rate expectations due to the non-yielding nature of bullion, were slightly higher. By 06:45 ET, spot gold had ticked up by 0.1% to $4,181.90 an ounce, while gold futures added 0.2% to $4,209.84 an ounce.

Nike has outlined plans to slash more jobs and overhaul its global business divisions, as CEO Elliott Hill attempts to show progress in his push to turnaround the athletic apparel giant.

An underwhelming forecast further darkened the outlook for the company, which has been grappling with intensifying competition, a lack of innovative new products, and poor performance in the critical Chinese market.

Revenue is expected to drop in the high single digit in fiscal 2027, compared to analysts' projections for a decline of around 2%, according to LSEG data cited by Reuters.

Against this backdrop, Nike said that it was not sure yet how many roles would be lost under the restructuring, but noted that it would begin telling impacted employees in 2027.

Shares of Nike slumped by more than 10% in premarket U.S. trading on Friday.

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