Futures tracking the S&P/TSX Composite Index inched higher on Monday, as renewed enthusiasm for artificial intelligence helped offset uncertainty over the outlook for a potential peace deal between the US and Iran. Canadian technology shares are poised to follow gains on Wall Street after Nvidia introduced a new, advanced PC processor, further bolstering optimism about AI-driven growth. The launch has reinforced the strong momentum in technology stocks that has helped equity markets absorb headwinds from the Iran conflict in recent weeks.
At the same time, hopes for an imminent Middle East peace agreement were dampened by another round of military exchanges between the two sides. Oil prices rebounded, reigniting stagflation concerns and driving bond yields higher, which in turn weighed on financial stocks. Gold prices also declined, putting additional pressure on mining shares.
