Futures Down Following Inflation Reading

Futures linked to Canadian stocks were subdued on Tuesday, hurt by a decline in crude prices, while investors turned cautious ahead of the domestic inflation data that could further solidify expectations from the Bank of Canada (BoC) to cut interest rates further.

The TSX Composite Index spiked 241.23 points to conclude Monday at 21,796.20

The Canadian dollar slid 0.09 cents to 73.13 cents U.S.

September futures were down 0.07% Tuesday.

In corporate news, French renewable power producer Neoen SA signed a share purchase agreement for the acquisition of a majority stake by asset management firm Brookfield.

In the economic docket, Statistics Canada says May’s gross domestic product rose 2.9% on a year-over-year basis in May, up from a 2.7% gain in April. On a seasonally-adjusted monthly basis, the CPI rose 0.3% in May.

ON BAYSTREET

The TSX Venture Exchange fell 6.9 points, or 1.2%, to 563.81.

ON WALLSTREET

Stock futures were mixed Tuesday after a selloff in favored technology names led the NASDAQ Composite to its worst day since April.

Futures for the Dow Jones Industrials dropped 44 points, or 0.1%, to 39,800.

Futures for the S&P 500 gained 10.5 points, or 0.2%, at 5,527.50.

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Futures for the NASDAQ Composite pointed upward 83 points, or 0.4% to 17,833.75.

Nvidia shares were up more than 3%. In the previous session, the stock dropped more than 6% to mark its biggest one-day slide since April 19 — when it lost 10%.

The latest decline pushed the AI darling deeper into correction territory, down 16% from an intraday record set last week. Other semiconductor stocks were also under pressure on Monday, including Super Micro Computer, Qualcomm and Broadcom.

Nvidia’s losses pushed the NASDAQ Composite down more than 1% on Monday, its biggest one-day loss since April. The NASDAQ-100 also suffered its worst day since April, as investors rotated out of chipmakers. This inter-market shift boosted the Dow by more than 200 points, making it the lone U.S. stock benchmark to post a gain in the previous session.

In pre-market trading Tuesday, SolarEdge Technologies sank 13% after announcing plans for a $300-million private offering of convertible notes, while Pool Corp dropped 11% after adjusting its guidance downward.

In Japan, the Nikkei 225 gained 1% Tuesday, while the Hang Seng in Hong Kong surged 0.3%.

Oil prices sagged 54 cents to $81.09 U.S. a barrel.

Gold prices sank $3.50 to $2,340.50 U.S. an ounce.