Baystreet.ca - Futures tied to Canada's main stock index dropped on Monday, mirroring its Wall Street counterparts, as a strong U.S. jobs report lessened the chances of rate cuts this year by the Federal Reserve.
The TSX slumped 305.78 points, or 1.2%, to close the Friday session at 24,767.73, marking its worst day since December 18 and its first weekly loss in three weeks. On the week, the index was punished nearly 306 points, or 1.12%.
The Canadian dollar handed off 0.06 cents to 69.30 cents U.S. Friday.
March futures dwindled 0.6% Monday.
Canadian investors have been on edge as they wonder whether U.S. President-elect Donald Trump, set to take office on January 20, would stick with his plans of a 25% tariff on Ottawa.
In corporate news, renewable fuel producer Tidewater Renewables on Friday announced the sale of its interest in the Rimrock Renewables natural gas partnership.
ON BAYSTREET The TSX Venture Exchange lost 6.66 points, or 1.1%, Friday to 608.42, making for a weekly loss of nearly 15 points, or 2.39%.
ON WALLSTREET
Stock futures slipped Monday south of the border as key tech shares that have led the bull market continued to be dumped by investors.
Futures for the Dow Jones Industrials descended 129 points, or 0.3%, to 42,031.
Futures for the S&P 500 Index fell 51 points, or 0.9%, to 5,815.25.
Futures for the tech-heavy NASDAQ slumped 271.5 points, or 1.3%, to 20,744.50.
Palantir (NASDAQ:PLTR) and Nvidia (NASDAQ:NVDA), two of the bull market leaders popular with retail investors, shed more than 3% in premarket trading to build upon their losses from last week. Nvidia fell nearly 6% during the period, while Palantir lost 11%. Other popular tech shares including Tesla (NASDAQ:TSLA), Broadcom (NASDAQ:AVGO), and Micron (NASDAQ:MU) were also down in premarket trading.
Investors are hoping the start of the fourth-quarter earnings season with stabilize markets. Banks including Citigroup (NYSE:C), Goldman Sachs (NYSE:GS) and JPMorgan Chase (NYSE:JPM) report on Wednesday, while Morgan Stanley (NYSE:MS) and Bank of America (NYSE:BAC) will post results on Thursday.
Data this week includes the December consumer price index on Wednesday morning. Before that, investors will parse wholesale inflation with December’s producer price index report on Tuesday.
In Hong Kong, the Hang Seng index dropped 1%. Japanese markets were closed.
Oil prices hiked $1.45 to $78.02 U.S. a barrel.
Gold prices dropped $23.00 to $2,692 U.S. an ounce.