TSX Futures Rise as Investors Await Key US Jobs Data

Futures linked to Canada’s main stock index pointed to a slightly higher open on Friday, as investors prepared for influential U.S. employment data that could shape the Federal Reserve's near-term interest rate policy.

By 6:09 a.m. ET, S&P/TSX 60 index futures had risen 0.2%, or 5 points, according to Investing.com. The move follows a session on Thursday where the benchmark S&P/TSX Composite Index closed down 0.2% at 35,154.76, its lowest finish since July 20, weighed down by a drop in metal mining shares.

Focus Turns to US Labor Market

The primary focus for market participants is the U.S. nonfarm payrolls report for September, due Friday morning. Economists forecast the U.S. economy added 89,000 jobs last month, a deceleration from the 162,000 roles created in August. The unemployment rate is expected to hold steady at 4.1%.

Any signs of persistent labor market strength could provide the Federal Reserve with more justification to continue raising interest rates to combat inflation, which remains well above its 2% target. Conversely, a weaker-than-expected report could suggest that prior rate hikes are beginning to cool economic activity.

Fed Policy and Market Context

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Recent commentary from Fed officials has remained hawkish. Dallas Fed President Lorie Logan said Thursday that she believes rates will need to rise by at least 50 basis points to curb persistent inflation. The central bank raised its key interest rate by 25 basis points last month, its first increase in nearly three years.

U.S. stock futures also advanced Friday morning, supported by a pullback in global bond yields and softer oil prices. Brent crude, the global oil benchmark, fell 2.4% to $99.83 a barrel, offering potential relief from energy-driven inflationary pressures. "[S]tocks are rallying so far this morning as investors take solace in yield stability [...] and Brent softness," analysts at Vital Knowledge said in a note.

Corporate Movers

In individual stock news, shares of Nike (NKE) slumped more than 10% in premarket U.S. trading. The athletic apparel company announced plans for job cuts and an organizational overhaul while also issuing a weak revenue forecast. Nike said it expects revenue to fall in the high single digits in fiscal 2027, a steeper decline than the 2% drop analysts had projected, according to LSEG data cited by Reuters.