December S&P/TSX 60 futures fell 0.3% early Friday after Thursday’s technology-led selloff spilled into Canada, before a hotter US jobs print repriced the Fed path.
MoneyTurkey Derivatives Desk | 6 November 2026
Key points
- December S&P/TSX 60 futures fell 0.3% at 5:42 a.m. ET (10:42 GMT) on Friday.
- Canada’s main stock index posted its biggest one-day decline in five months on Thursday as the US tech selloff crossed the border.
- US October non-farm payrolls later printed 165,000 vs 65,000 expected, lifting December Fed-hike odds and selling Treasury futures (related).
Equity-index futures tied to Canada’s blue chips opened softer on Friday as traders digested Thursday’s technology-led rout. December contracts on the S&P/TSX 60 index were down 0.3% at 5:42 a.m. ET. The move followed the benchmark’s steepest one-day cash decline in five months, when the selloff in US technology shares spilled into the Canadian market.
What happened
Futures tracking Canada’s large-cap basket slipped in the early North American window after a sharp technology-led session on Thursday. Reuters reported December S&P/TSX 60 futures down 0.3% at 5:42 a.m. ET (10:42 GMT). Canada’s main stock index had just posted its biggest one-day drop in five months as US tech weakness crossed the border.
Wire accounts tied Thursday’s nearly $3 trillion wipe from S&P 500 market value to fears of tougher oversight of AI and data centers after Democrats took control of the US Congress. Brent crude was also softer on the week after midterms results raised hopes of easing Middle East conflict. Traders digested Prime Minister Mark Carney’s second budget, which channels windfall oil revenues into infrastructure and productivity projects over five years while preserving fiscal targets and reducing reliance on the US. The government trimmed deficit forecasts through 2030/31 and nudged 2027 growth slightly lower than initially expected. Separately, the Bank of Canada and the federal finance ministry unveiled a new five-year monetary-policy framework that keeps the inflation target at 2%.
Canada’s employment report was also due Friday; a Reuters poll before the print pointed to about 13,600 jobs added and an unemployment rate steady at 6.5%.
What the futures and options market is pricing
The early −0.3% print in December S&P/TSX 60 futures captured caution after the tech spillover and ahead of the US labour release. Later Friday, October non-farm payrolls printed 165,000 — well above the 65,000 consensus — with unemployment at 4.1% and year-over-year wage growth at 3.1%. Rate-sensitive Treasury futures sold off as traders lifted December Fed-hike odds toward 70% and priced at least 40 basis points of additional tightening through September 2027 (see MoneyTurkey’s Treasury futures wrap).
For Canadian investors the linkage is direct: a hotter US labour tape shapes the Fed path, front-end yields, the Canadian dollar and borrowing costs for levered domestic balance sheets. Equity-index futures on the TSX complex remain a first read on whether the Thursday spillover fades or deepens once US cash markets finish digesting the jobs surprise.
Why it matters
Canada’s equity complex rarely decouples from US tech risk when mega-cap AI names reverse hard. Thursday’s cash decline already marked the steepest one-day drop in five months; the early Friday futures dip showed that caution carried into the next session before the payrolls catalyst hit.
With the Fed path now repriced higher after the jobs beat, Canadian rate-sensitive sectors and the currency face a tighter external policy backdrop even as Ottawa keeps a 2% inflation target and talks up productivity spending from oil windfalls.
What to watch
- Canadian dollar and TSX cash reaction into the US close after the payrolls surprise
- Canada’s employment report outcome vs the pre-print Reuters poll (+13,600 / 6.5% unemployment)
- Bank of Canada framework follow-through with the 2% inflation target unchanged
- Brent weekly close after the midweek midterms move
Related on MoneyTurkey
For information only. Not investment advice.
Sources
- Reuters via Yahoo Finance: TSX futures slip as tech jitters linger ahead of employment data (6 Nov 2026; Dec S&P/TSX 60 futures −0.3% at 5:42 a.m. ET / 10:42 GMT)
- MoneyTurkey: Treasury Futures Sell Off on Jobs Data (payrolls LOCK: +165,000 vs +65,000; U-rate 4.1%; AHE YoY 3.1%)
