March futures on the S&P/TSX index were down 0.4% at 6:51 a.m. ET (1151 GMT).

U.S. stock index futures also took a breather on Tuesday following a rally in the previous session as Treasury yields rose. [.N]

Investors have scaled back bets of early rate cuts from the Federal Reserve and are now watching out for data on U.S. consumer and producer prices, due on Thursday and Friday, respectively, for more clues on when the central bank could start lowering borrowing costs.

The Toronto Stock Exchange's S&P/TSX composite index ended higher on Monday, as gains in technology shares outweighed declines in energy stocks.

Oil prices stabilized on Tuesday after dropping in the previous session with markets weighing Middle East tensions against demand worries. [O/R]

Gold prices made a comeback after hitting a three-week low in the previous session. [GOL/]

Financial stocks will grab the spotlight on Friday as big U.S. banks like JPMorgan Chase are set to release their quarterly results.

Brokerage Canaccord Genuity downgraded Enthusiast Gaming Holdings stock to "hold" from "speculative buy".

Cannabis company Tilray Brands reported a 34% rise in second-quarter revenue.

COMMODITIES AT 6:51 a.m. ET

Gold futures: $2,039.8; +0.3% [GOL/]

US crude: $72.33; +2.2% [O/R]

Brent crude: $77.72; +2.1% [O/R]

(Reporting by Purvi Agarwal and Amruta Khandekar in Bengaluru; Editing by Ravi Prakash Kumar)