Market Overview

By 07:56 ET (11:56 GMT) the S&P/TSX 60 index futures contract was up 33 points, equivalent to a 1.6 % gain, as investors priced in optimism surrounding a possible peace agreement between the United States and Iran and digested Shopify’s stronger‑than‑expected revenue outlook.

Shopify Earnings

Shopify reported a current‑quarter revenue projection that exceeded analysts’ expectations, indicating that its investment in artificial‑intelligence tools is beginning to attract additional merchants. The upbeat guidance lifted Shopify shares about 5.4 % in pre‑market trading.

Canadian Technology Sector

The broader Canadian technology sector rose 7.1 %, led by a surge in shares of electronic‑equipment maker Celestica. Metal‑mining stocks also contributed to the index’s advance.

Oil, Gold and Inflation Outlook

A decline in crude‑oil prices, driven by expectations that a Middle‑East peace deal could reopen the Strait of Hormuz, eased inflation concerns. The softer oil backdrop helped gold, a non‑yielding asset, climb to a one‑month high; spot gold reached $4,211.20 per ounce, up 3.3 %, while gold futures rose to $4,270.80, a 2.9 % increase.

U.S. Futures and Earnings

U.S. equity futures were broadly higher at 05:49 ET (09:49 GMT): Dow futures gained 142 points (0.3 %), S&P 500 futures rose 23 points (0.3 %), and Nasdaq‑100 futures were essentially flat. However, pre‑market weakness was observed in SpaceX and Advanced Micro Devices (AMD). SpaceX, reporting its first quarterly earnings as a listed company, posted stronger‑than‑expected revenue and a narrower loss but warned that high spending on AI infrastructure is pressuring free cash flow. CEO Elon Musk reiterated a target of $1 trillion in revenue by 2030 and hinted at launching orbital data‑centers as early as next year. AMD posted quarterly revenue of $11.5 billion for the period ended 27 June, slightly above Wall Street forecasts, but its shares fell more than 8 % after Musk announced that SpaceX will source processors exclusively from Nvidia’s Blackwell AI server, ending its purchases from AMD.

Geopolitical Developments

U.S. officials, including President Donald Trump, suggested that a deal to reopen the Strait of Hormuz was imminent, and reports indicated that the United States, Oman and Iran could announce an agreement as early as Wednesday. Iranian media cautioned that U.S. threats might delay the settlement. The prospect of resumed oil flow through the strait, which previously accounted for roughly 20 % of global oil and LNG supplies, contributed to the decline in oil prices.

Monetary‑Policy Implications

The expectation of lower oil prices prompted traders to cut forecasts for Federal Reserve tightening; markets are now pricing in only one rate hike by year‑end, down from two hikes a week earlier. The reduced rate‑rise outlook further supports gold’s rally by lowering the opportunity cost of holding the metal.