Canadian stocks have moved sharply higher during trading on Wednesday, offsetting the weakness seen over the three previous sessions.
The benchmark S&P/TSX Composite Index surged at the start of trading and has seen further upside over the course of the day. Currently, the index is up 431.17 points or 1.3 percent at 33,998.08.
The rally on Bay Street comes amid optimism about an end to the conflict in the Middle East after a report from Axios said the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding.
Citing two U.S. officials and two other sources briefed on the issue, Axios said the deal would include Iran committing to a moratorium on nuclear enrichment and both sides lifting restrictions around transit through the Strait of Hormuz.
While noting that nothing has been agreed yet, the sources told Axios this was the closest the parties had been to an agreement since the war began.
Adding to the optimism about a peace deal, President Donald Trump said the U.S. would pause its efforts to escort ships through the Strait of Hormuz to see whether or not the agreement can be finalized and signed.
Gold stocks are turning in some of the market's best performances amid a sharp increase by the price of the precious metal, with the S&P/TSX Global Gold Index soaring by 7.4 percent.
Considerable strength is also visible among financial stocks, as reflected by the 1.6 percent gain being posted by the S&P/TSX Capped Financial Index.
Real estate and industrial stocks are also seeing notable strength on the day, while energy stocks have moved sharply lower along with the price of crude oil.
With Brent crude oil futures plummeting by more than 7 percent due to the report about a potential U.S.-Iran peace deal, the S&P/TSX Capped Energy Index has plunged by 4.4 percent.
Technology and consumer staples stocks have also moved to the downside, somewhat limiting the advance by the broader markets.
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Market Analysis
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.