Investing.com - Futures linked to Canada’s main stock exchange inched lower on Wednesday, pointing to a possible cooling in a multi-day winning streak for the index.

By 07:00, the S&P/TSX 60 index standard futures had dropped by 9 points, or 0.6%.

The Toronto Stock Exchange ’s composite index closed up by 83.7 points, or 0.3%, on Tuesday, racing above a record high notched on Friday. The average was shuttered on Monday for a holiday.

It has now risen for ten consecutive sessions -- the longest streak of gains since 2021.

Investors largely waved off hot Canadian inflation data and assessed the outlook for trade deals, with finance leaders from Group of Seven countries meeting in Canada this week.

U.S. futures drop

U.S. stock index futures fell Wednesday, pointing to an extension to the prior session’s falls amid persistent concerns over the U.S. economy and trade tariffs.

At 07:08 ET, Dow Jones Futures fell 377 points, or 0.8%, S&P 500 Futures dropped 41 points, or 0.7%, and Nasdaq 100 Futures slipped 149 points, or 0.7%.

The main averages on Wall Street retreated on Tuesday, as stocks were weighed down by 10-year U.S. Treasury yields, which touched an intraday high before easing back to settle at around 4.48%.

The S&P 500 index fell for the first time after six sessions on Tuesday, pressured by a pullback in technology shares after recent gains.

Sentiment remains cautious

Investors remained on edge over the U.S. economy after Moody’s downgraded the U.S. credit rating last week, while Congress prepared to vote on a sweeping tax cut bill backed by President Donald Trump.

On the trade front, investors were holding out for more trade deals between the U.S. and major economies. A host of reports showed high-level talks with Japan are set to resume this week, while negotiations with several other countries are ongoing.

China added to the risk aversion by warning that the U.S.’ chip export controls threatened to undermine a trade truce reached in Geneva last week.

Comments from a slew of Federal Reserve officials also showed the central bank remained concerned over economic and trade-related uncertainty, which diminishes the chance of any interest rate cuts in the near-term. Fed officials also warned that high trade tariffs were likely to drive up U.S. inflation.

Trump’s tax bill in focus

President Donald Trump’s tax cut and spending bill has apparently run into opposition from several dissenting lawmakers, and faces a critical stress test on Wednesday as Republicans in the U.S. House of Representatives try to overcome internal divisions.

The bill, if approved, could add $3 trillion to $5 trillion to the country’s $36.2 trillion debt load, according to nonpartisan analysts, and comes after Moody’s downgraded its U.S. credit rating by a notch last week over growing national debt.

Crude surges on Israel strike talk

Oil prices surged higher following reports Israel is preparing a strike on Iranian nuclear facilities, raising fears supply could be hit from this key Middle East producing region.

At 07:09 ET, Brent futures jumped 0.8% to $65.91 a barrel, and U.S. West Texas Intermediate crude futures rose 0.9% to $62.58 per barrel.

Israel is preparing for a potential military strike on Iranian nuclear facilities, as the U.S. continues to pursue a diplomatic agreement with Tehran, CNN reported on Tuesday, citing multiple U.S. officials familiar with recent intelligence.

The report said that the Israeli leaders have not made a final decision yet, but the likelihood of an Israeli strike has "gone up significantly" in recent months.

Additionally, U.S. crude stockpiles increased by approximately 2.5 million barrels for the week ending May 16, according to data from the American Petroleum Institute on Tuesday, defying forecasts for a 1.9 million-barrel draw.

Gold ticks higher

Gold prices rose on Wednesday as the report on Israeli attack plans on Iran ramped up safe haven demand.

Persistent concerns over the fiscal health of the U.S., plus uncertainty over trade negotiations also kept gold relatively well-bid, helping bullion recoup some of last week’s losses.

Spot gold advanced by 0.7% to $3,312.34 an ounce, while gold futures for June climbed 0.9% to $3,313.84/oz by 07:10 ET.