Futures tied to the S&P/TSX Composite Index edged lower on Friday as investors digested stronger-than-expected Canadian employment data alongside persistent uncertainty over peace efforts in the Middle East. Canadian employment rose by 88,000 in May, the largest monthly gain since December 2024 and far exceeding expectations for an increase of 10,000. The robust labor report reinforced expectations that the Bank of Canada may maintain a hawkish policy stance, putting pressure on financial shares and the broader index. At the same time, Iran-backed Hezbollah rejected a new ceasefire proposal for Lebanon, while Israel said it would not withdraw its troops, undercutting US diplomatic efforts to halt the fighting and advance talks with Iran. Oil prices held above $90 per barrel and bond yields climbed, rekindling concerns about inflation and borrowing costs. Gold prices declined, weighing on mining stocks.