Futures for equities in Canada’s largest market pointed to a higher open on Friday after a mild recovery in U.S. tech stocks following a plunge in the previous session that was sparked by a selloff on Wall Street.
The TSX dropped 198.28 points, or 1.2%, to close Thursday at 16,185.32.
The Canadian dollar eked higher 0.05 cents Friday to 75.87 cents U.S.
September futures were up 0.8% Friday.
The federal government says its plan to require reductions in carbon intensity of fuels will boost the economy as it recovers from the coronavirus pandemic, but oil and chemical companies say they are worried it will boost their costs as they struggle to rebound.
The TSX Venture Exchange dipped 1.21 points Thursday to 742.05.
U.S. stock futures traded higher early Friday after a volatile session in which the recent tech selloff resumed.
Futures for Dow Jones Industrials rocketed 124 points, or 0.5%, early Thursday, to 27,550.
Futures for the S&P 500 advanced 22.5 points, or 0.7%, at 3,352.50.
Futures for the NASDAQ Composite recovered 83.75 points, or 0.8%, to 11,249.25.
The Dow ended Thursday’s session down more than 1%, along with the S&P 500. The NASDAQ dropped 2%. All three of the major indexes had popped before closing lower.
Thursday’s declines put the S&P 500 down more than 2% for the week along with the 30-stock Dow. The NASDAQ, meanwhile, has dropped 3.5% week to date.
Another one-week decline would mark the S&P 500’s first back-to-back weekly drop since May. The broader market index was also on pace for its worst week since June 26, when it slid 2.9%.
That whipsaw action came as tech — the best-performing market sector year to date — gave up gains earlier Thursday and continued its recent downward trend. Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft all closed sharply lower on Thursday. Tesla, which was up more than 8% at one point, posted a gain of just 1.4%.
Tech stocks were attempting to rebound again in premarket trading Friday. Apple was higher by 1% and Tesla gained 3% in early trading.
Peloton and Oracle rose in pre-market trading on the back of better-than-expected quarterly results. Peloton gained more than 10% and Oracle climbed 4%.
On the data front, the latest reading on the monthly U.S. consumer price index is set for release Friday at 8:30 a.m.
Overseas, in Japan, the Nikkei 225 gained 0.7% Friday, while in Hong Kong, the Hang Seng index gathered 0.8%.
Oil prices slipped 18 cents to $37.12 U.S. a barrel.
Gold prices sank $12.10 to $1,952.20.
Futures Try to Rally to End Short Week