FX.co ★ TSX Futures Steady as Tech Valuation Fears Offset Policy Moves

On Thursday, futures linked to the S&P/TSX Composite Index remained largely unchanged after the index reached an all-time high in the previous session. The investor sentiment was weighed down by renewed concerns about overvalued technology stocks, which overshadowed the widely anticipated decision by the Bank of Canada (BoC) to maintain interest rates, alongside a rate reduction by the Federal Reserve (Fed). Global apprehension escalated following disappointing quarterly results and forecasts from Oracle, which rekindled fears of a potential bubble driven by artificial intelligence, subsequently impacting tech stocks worldwide.

Meanwhile, the BoC decided to keep its policy rate steady at 2.25%, while the Fed opted for a 25 basis point rate cut. However, the prospect of further monetary easing remains ambiguous against a backdrop of incomplete economic data, inflationary pressures, and a forthcoming change in leadership at the central bank. Additionally, a decline in oil prices adversely affected Canadian oil producers, while the drop in gold prices exerted pressure on mining companies. In corporate news, Transcontinental announced fourth-quarter revenues that fell short of market expectations.