STOCKS | Canadian Index Futures Rise 0.8% as Tech Rebounds Ahead of U.S. Inflation Data

Canadian benchmark stock index futures rose 0.8% on November 9 as technology shares continued to rebound after a sharp sell-off, improving market sentiment. According to Sina Finance, the S&P/TSX Composite Index rose 0.5% to 35,789.09 on Friday, reversing earlier losses and gaining 0.5% for the week. The index had fallen 2% on Thursday, its largest one-day decline in five months. Following the U.S. midterm elections, concerns about tighter regulation of the AI industry and possible effects on data center construction approvals triggered a sell-off in global semiconductor and software stocks, weighing on Canadian technology and growth shares. As investors returned to oversold technology stocks, Canadian equities steadied and attention began shifting back to corporate fundamentals. Canadian economic data is limited this week, and market moves are expected to be driven mainly by U.S. data. Investors are focused on the U.S. Consumer Price Index, due Tuesday, and the Producer Price Index, due Friday. After U.S. employment data exceeded expectations last week, markets currently assign about an 80% probability to another Federal Reserve rate hike in December. Higher-than-expected U.S. inflation could reinforce rate-hike expectations, weigh on North American equity valuations, and affect the Bank of Canada's room for future monetary policy adjustments.