Bay Street May Open Higher; Tech Stocks Likely To Decline
(RTTNews) - Canadian stocks are seen opening on a positive note Tuesday morning, tracking higher gold prices and on easing worries about inflation following a sharp drop in oil prices. However, the upside could be limited as tech stocks may find the going a bit tough amid renewed uncertainty about returns on AI investments.
West Texas Intermediate crude oil futures are down $1.43 or 1.53% at $92.31 a barrel.
Gold futures are up $17.70 or 0.43% at $4,208.30 an ounce, while Silver futures are down marginally at $60.475 an ounce.
The Canadian market closed on a strong note on Friday as rate hike fears faded after data from Statistics Canada showed an unexpected decrease in Canadian employment in the month of September.
The report said Canadian employment fell by 68,000 jobs in September, while the unemployment rate crept up to 6.5% from previous month's 6.4%.
The benchmark S&P/TSX Composite Index jumped 519.24 points or 1.5% to 35,664.62, continuing to regain ground after ending Wednesday's trading at its lowest closing level in well over two months. The market remained closed on Monday for Thanksgiving Day.
Asian stocks retreated on Tuesday, with tech stocks coming under pressure as warnings mounted around the AI trade.
Broadcom and Intel CEOs have flagged capital costs and uncertain returns as potential constraints on AI infrastructure expansion as Chinese artificial intelligence models gain users rapidly. Last week, billionaire Ray Dalio warned that AI is a "classic bubble" that is nearing a bursting point.
European stocks pared early gains and turning in a mixed performance today afternoon with investors making cautious moves, reacting to some corporate news and looking ahead to earnings updates.
