TSX Futures Creep Lower on Trump Tax Bill

Futures for Canada's main stock index edged lower on Thursday, as the U.S. House of Representatives narrowly passed President Donald Trump's "big, beautiful" tax bill.

The TSX Composite Index flopped 216.46 from Tuesday’s all-time high to conclude Wednesday at 25,839.17.

June futures slid 0.1% Thursday.

The Canadian dollar faded 0.02 cents to 72.12 cents U.S.

The Republican-controlled U.S. House narrowly passed a sweeping tax and spending bill that would enact much of Trump's policy agenda, while investors worried it will add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade.

On Wednesday, federal Finance Minister François-Philippe Champagne said he had a good meeting with U.S. Treasury Secretary Scott Bessent and that both were pleased with the progress they were making. This follows Trump and Prime Minister Mark Carney's agreement earlier this month to initiate serious talks on a new relationship.

In corporate news, TD Bank reported a fall in second-quarter profit, as the Canadian lender stockpiled money to cover for potential bad loans in an uncertain economic environment.

On the economic slate, Statistics Canada reports that, in April, the Industrial Product Price Index declined 0.8% month over month and increased 2.0% year over year.

Meanwhile, the Raw Materials Price Index fell 3.0% month over month and declined 3.6% year over year.

ON BAYSTREET

The TSX Venture Exchange tumbled 14.06 points, or 2%, Wednesday to 678.68.

ON WALLSTREET

Stocks were set to add to their losses for the week on Thursday after U.S. lawmakers passed a bill that investors fear could worsen the U.S. deficit. The 30-year Treasury yield hit its highest since October 2023 as the bill advanced to the Senate.

Futures for the Dow Jones Industrials index tumbled 211 points, or 0.5%, to 41,736

Futures for the S&P 500 index slid 24.5 points, or 0.4%, to 5,836.75.

Futures for the NASDAQ declined 98.25 points, or 0.4%, to 21,058.50.

In a party line vote early Thursday, House members approved the bill that includes lower taxes and additional military spending. The bill — which now goes to the Senate — could increase the U.S. government’s debt by trillions and raise the deficit at a time when fears of a flare-up in inflation due to Trump tariffs are already weighing on bond prices and boosting yields.

The Congressional Budget Office puts the price tag for bill at nearly $4 trillion.

In Japan, the Nikkei 225 index ditched 0.8% Thursday, while in Hong Kong, the Hang Seng 1.2%.

Oil prices sank 93 cents to $60.64 U.S. a barrel.

Gold prices stumbled $1.80 to $3,311.70 U.S. an ounce.