Bay Street May Open Higher, But Tech Weakness May Weigh

(RTTNews) - The Canadian market may open higher on Thursday, tracking firm precious metals and oil prices. However, a sell-off in global tech stocks amid concerns over returns on AI-related investments could hurt sentiment and limit market's upside.

Data from Statistics Canada showed manufacturing sales in Canada rose 1.5% month-over-month to C$79.9 billion in August, beating expectations for a 1.1% increase and marking the sharpest rise since April. Wholesale Sales in Canada decreased to -1.6% in August from 0.3% in July.

Canada's manufacturing capacity utilization rate rose to 81.9% in August from 80.7% in the previous month.

Another data from Statistics Canada showed new motor vehicle sales in Canada rose by 4.9% to 174,600 units in August from 166,500 units in the corresponding period a year earlier.

Following the rally seen over the two previous sessions, Canadian stocks showed a significant move back to the downside during trading on Wednesday.

The benchmark S&P/TSX Composite Index slumped early in the session and slid more firmly into negative territory as the day progressed, closing down 399.52 points or 1.1 percent at 35,584.46.

The sharp pullback on Bay Street came as U.S. core consumer inflation data for September exceeded economist estimates, leading to renewed concerns about the outlook for interest rates.

Asian stocks retreated on Thursday, with AI and semiconductor stocks coming under heavy selling pressure on concerns about the sustainability of the artificial intelligence trade.

After U.S. CPI data surprised to the upside, investors awaited the release of U.S. producer price inflation and retail sales data as well as speeches from Fed officials, including Chairman Kevin Warsh, later in the day for additional clues on the Fed's next move.

European stocks are turning in a mixed performance in cautious trade with investors reacting to the latest batch of economic data from the region. Worries about weakness in the tech sector amid concerns over returns on AI-related investments weigh on sentiment.

In commodities, West Texas Intermediate Crude oil futures are up $0.32 or 0.34% at $95.41 a barrel.

Gold futures are up $65.00 or 1.58% at $4,172.90 an ounce, while Silver futures are gaining $0.963 or 1.72% at $56.840 an ounce.