Global markets took a breather and searched for direction after an AI-related tech rally yesterday.

Wall Street futures were muted after the S&P 500 and the Nasdaq notched fresh all-time closing highs in the previous session.

TSX futures edged up after Canada’s main stock market closed up yesterday, just shy of Monday’s record high.

In Canada, investors are getting results from Aritzia Inc. and Tilray Brands Inc.

On Wall Street, markets are watching earnings from Pepsico Inc., Delta Air Lines Inc., Levi Strauss & Inc.

“The AI theme remains intact as we see another stream of [multibillion-dollar] investment come into the space,” wrote analysts at JPMorgan in a note.

“Investors can talk all they want about the ‘circularity’ of this AI investment cycle, but these daily headlines are being rewarded with strength until proven otherwise.”

Overseas, the pan-European STOXX 600 was down 0.21 per cent in morning trading. Britain’s FTSE 100 declined 0.43 per cent, Germany’s DAX climbed 0.31 per cent and France’s CAC 40 advanced 0.16 per cent.

In Asia, Japan’s Nikkei closed 1.77 per cent higher, while Hong Kong’s Hang Seng slid 0.29 per cent.

Oil prices were little changed as investors weighed a ceasefire deal in Gaza that could ease geopolitical tensions in the Middle East against stalled peace talks in Ukraine that could sustain sanctions on Russia and curb its exports.

Brent crude futures were down 12 US cents to US$66.13 a barrel. West Texas Intermediate (WTI) crude dropped 14 US cents to US$62.41.

“The peace agreement is a major breakthrough in recent Middle Eastern history – its implications for oil markets could be wide-ranging, from the possibility of a decrease in the Houthis’ attacks in the Red Sea to an increase in the likelihood of a nuclear deal with Iran and, eventually, the possibility for Iran to increase its crude and product exports,” Rystad Energy’s chief economist Claudio Galimberti said in a note.

In other commodities, spot gold held steady at US$4,035.70 an ounce after hitting a record high of US$4,059.05 yesterday. U.S. gold futures for December delivery fell 0.4 per cent to US$4,055.20.

The Canadian dollar strengthened against its U.S. counterpart.

The day range on the loonie was 71.61 US cents to 71.77 US cents in early trading. The Canadian dollar was down about 0.82 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, slipped 0.05 per cent to 98.86.

The euro fell 0.03 per cent to US$1.1627. The British pound dropped 0.1 per cent to US$1.3390.

In bonds, the yield on the U.S. 10-year note was last up at 4.130 per cent.

*Note: Several scheduled U.S. data reports may not be released if the U.S. government shutdown isn’t resolved.

8 am ET: Bank of Canada senior deputy governor Carolyn Rogers speaks in Toronto

8:30 am ET: U.S. initial jobless claims for last week (tentative)

8:30 am ET: Fed Chair Jerome Powell gives prerecorded welcome remarks at the Fed’s Community Bank Conference

Several Fed members expected to speak during the day.

With Reuters and The Canadian Press