Canadian stocks surged again on Monday after ending last week with three consecutive sessions of gains as signals of a U.S.-Iran peace deal continue to grow stronger.
After opening above previous week's close, today the benchmark S&P/TSX Composite Index initially gained momentum to hit a new intra-day record high of 34,846.50 and then gave ground but traded firmly positive throughout the rest of the session before settling at 34,830.89, up by 359.53 points (or 1.04%).
Ten of the 11 sectors posted gains today, with the materials sector leading the pack.
Efforts to end the nearly three-month-long U.S.-Israel versus Iran war intensified over the past few days.
Through Truth Social, U.S. President Donald Trump messaged that negotiations with Iran are proceeding well but emphasized that either there will be a great deal for all or no deal at all, and warned that if war resumes, it would be bigger and stronger than before.
Trump mentioned that during the discussions he had with the leaders of Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan, and Bahrain he had insisted those countries to mandatorily sign on to the Abraham Accords to make the settlement with Iran a historically significant deal. Of note, the U.A.E. and Bahrain are already members of the agreement.
Trump also stated that he has commissioned his representatives to start and complete the accord.
Earlier on Sunday, Trump remarked that negotiations were ongoing in a constructive and orderly manner but claimed that he had asked the U.S. representatives not to rush into a deal and asserted that the current naval blockade on ships entering or exiting Iran will remain in full force.
While welcoming a professional relationship with Iran, Trump ruled out allowing Iran to develop or procure any nuclear weapon.
U.S. Secretary of State Marco Rubio stated that a solid proposal is on the table.
Commenting on the status of talks as "Work in Progress", Rubio stated he expected some good news, possibly today.
Rubio highlighted that diplomacy will be given every chance needed before exploring other alternatives.
Today, the spokesperson for Iran's Foreign Ministry Esmail Baghaei clarified that Iran is not seeking to impose tolls on vessels passing through the Strait of Hormuz.
Iran stated that some progress has been made though a deal is not imminent, as of now.
An Iranian team comprising Foreign Minister Abbas Araghchi and other high-level officials are in Qatar to discuss sensitive issues before reaching an understanding with the U.S.
Meanwhile, citing a Middle East diplomatic source, the Nikkei newspaper reported that once a deal is made, Iran would clear the mines from the strait during a 30-day window to allow free, safe and toll-free navigation for all ships.
In addition, the ceasefire agreed in early April would be extended for 60 days during which talks on Iran's nuclear programs will be held.
On the economic front, there were no significant releases today except Statistics Canada's wholesale trade report which showed the month-on-month sales to have edged up 0.10% in April following a 1.90% increase in the previous month.
Elsewhere in the Middle East, despite a proclaimed ceasefire, Israel continued attacking Lebanon targeting Hezbollah militants.
Canadian investors are also focusing on the first round of formal negotiations between the U.S. and Mexico in Mexico City regarding the Canada-United States-Mexico Agreement which is up for renewal in a few weeks.
In the U.S., markets were closed on account of Memorial Day holiday.
Major sectors that gained in today's trading were Materials (4.35%), IT (2.06%), Consumer Discretionary (1.40%), Industrials (1.20%), and Financials (0.90%).
Among the individual stocks, Hudbay Minerals Inc (8.94%), First Quantum Minerals Ltd (8.36%), Capstone Copper Corp (7.44%), Montage Gold Corp (6.98%), and Coveo Solutions Inc (7.88%) were the prominent gainers.
Energy (3.38%) is the only sector that lost in today's trading.
Among the individual stocks, Tamarack Valley Energy Ltd (5.24%), Baytex Energy Corp (5.20%), Athabasca Oil Corp (5.18%), Strathcona Resources Ltd (5.07%), and Ces Energy Solutions Corp (4.87%) were the notable losers.
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Market Analysis
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.