Futures tracking the Canadian stock market slipped on Friday, as a renewed surge in oil prices stoked inflation worries and added pressure on technology shares in the wake of a selloff on Wall Street. Crude oil advanced on escalating Houthi attacks against targets in Saudi Arabia and reports that the United States may resume strikes on Iran.
Canadian government bond yields climbed, with markets increasingly pricing in a rate hike by the Bank of Canada at its next meeting, reflecting heightened energy-driven inflation pressures. Major Canadian banks listed in the US traded lower in overnight action.
Technology stocks remained under pressure, extending the ongoing rotation out of AI-related names. In the previous session, Celestica sank 12%, while Shopify also ended sharply lower. Celestica is scheduled to report its third-quarter 2026 results on Monday.
Elsewhere, gold prices were choppy and silver declined, adding to the drag on mining shares.
