Futures tied to Canada's main stock index edged higher on Friday, as growing hopes of a near-term Federal Reserve rate cut overshadowed concerns over a U.S. government shutdown.
The TSX gained 52.92 points to conclude trading on Thursday at 30,160.59.
Futures were moving up 0.4% Friday.
The prolonged U.S. government shutdown enters its third day on Friday, delaying key economic data such as the non-farm payrolls report that was scheduled for release on Friday.
However, investors have mostly shrugged off the shutdown, the 15th since 1981, partly because shutdowns have historically had a limited impact on economic growth and market performance.
ON BAYSTREET
The TSX Venture Exchange moved forward 3.38 points Thursday to 955.04.
ON WALLSTREET
Stock futures rose Friday after the market recorded new highs in the previous session, driven by strength in the artificial intelligence trade that appear
Futures for the Dow Jones Industrials advanced 61 points, or 0.1%, to 46,867.
Futures for the S&P 500 inched up 7.75 points, or 0.1%, at 6,774.50
Futures for the NASDAQ spiked 36.5 points, or 0.1%, to 25,146.50.
The three major U.S. indexes climbed to record levels on Thursday, buoyed by gains in Nvidia, which also hit an all-time high.
Berenberg has initiated coverage of Italian supercar Ferrari maker with a buy rating U.S.-listed shares of Ferrari are up 18.7% year to date.
The government shutdown, which entered its third day on Friday, has exacerbated investors’ underlying concerns this year about macroeconomic and policy headwinds, inflation risks and a slowing labor market.
Investors are waiting to see how long the shutdown will persist to gauge the seriousness of its economic repercussions. To be sure, shutdowns have not been market-moving events in the past.
On Thursday, Treasury Secretary Scott Bessent told reporters that the current lapse in government funding could lead to “a hit to the GDP, a hit to growth and a hit to working America.”
President Donald Trump has threatened massive layoffs, which have stoked ongoing concerns about the jobs market. On Thursday, he said the Democrats have given him an “unprecedented opportunity” to cut federal agencies. The Congressional Budget Office estimates 750,000 federal workers will be furloughed each day.
The shutdown also has led to an economic data blackout. The Labor Department’s pause on virtually all activity has blocked the Friday release of the September nonfarm payrolls report, lessening the amount of economic data the Federal Reserve can factor into its interest rate decision at its October meeting. However, it also removes a factor that could lend pressure to stocks.
Despite the rancor, stocks are tracking for a winning week. The S&P 500 is up nearly 1.1% week to date, while the 30-stock Dow has added 0.6% and the NASDAQ has climbed 1.6%.
In Japan, the Nikkei 225 shot higher 1.9% Friday, while in Hong Kong, the Hang Seng scaled back 0.5%.
Oil prices nicked 30 cents to $60.78 U.S. a barrel.
Gold prices were brighter $12.50 to $3,880.60 U.S. per ounce.
Wall St. Set for Strong Gains Despite Shutdown
