Reversing the slump from yesterday's session, Canadian stocks soared on Thursday amid rising expectations of de-escalation in the Middle East after Israel and Lebanon agreed to renew the ceasefire. Separately, the U.S. and Iran confirmed the continuation of peace talks to resolve hostilities.
After opening above yesterday's close, today the benchmark S&P/TSX Composite Index gained momentum and traded firmly positive to reach a new record intraday high of 35,291.13 before settling at 35,217.06, up by 415.52 points (or 1.19%).
Nine of the 11 sectors posted gains today, with the healthcare sector leading the pack.
Today, the U.S.-Israel versus Iran war entered day number 97.
Yesterday, in a significant development related to the Middle East crisis, the U.S., Israel, and Lebanon issued a joint statement announcing that Israel and Lebanon have agreed to implement a ceasefire.
After the fourth round of negotiations held in Washington on June 2 and 3 (mediated by the U.S.), both countries agreed to end hostilities along the Israel-Lebanon border and clear the way for broader security and peace.
The deal calls for complete cessation of Hezbollah's firings and complete evacuation of the militant group from south of the Litani River.
However, the Iran-backed Hezbollah militant group in Lebanon rejected the ceasefire. Its leader Naim Qassem called the truce plan a roadmap to annihilate part of the Lebanese people.
The announcement assumes significance as Iran had asserted that a peace deal with the U.S. should include halting the fighting in Lebanon.
On Tuesday, during a U.S. Senate hearing, U.S. Secretary of State Marco Rubio asserted that reopening of the Strait of Hormuz would not entitle Iran to get sanctions relief.
Commenting on talks with Iran, U.S. President Donald Trump stated that the negotiations are progressing very well and could yield results over the coming weekend.
Optimistically Trump stated that the Strait of Hormuz will reopen immediately after the signing of a Memorandum of Understanding.
Trump wanted to separate the discussions to end the Israel-Lebanon conflict from the ongoing U.S.-Iran talks.
Trump reaffirmed that Israel and Lebanon have agreed not to attack each other.
Recently, U.S. forces attacked Iran in self-defense, and Iran conducted retaliatory strikes on U.S. bases in Kuwait and Bahrain.
Dismissing the skirmishes as insignificant, Trump assured that the ceasefire has not collapsed.
Differing from Trump's statement, Iran's Foreign Minister Abbas Araghchi stated that the lines of communication with the U.S. to end the three-plus-month war remain open but no tangible progress has been made.
On the economic front, it was an uneventful day for Canada with no significant data releases.
The Bank of Canada's monetary policy announcement is scheduled for June 10. The policy rate currently stands at 2.25%.
Amid two consecutive quarters of contraction in the economy and a soft labor market underscoring ongoing weakness due to geopolitical tensions, economists are of the view that the central bank would leave the rates unchanged.
Major sectors that gained in today's trading were Healthcare (3.22%), Financials (1.66%), Materials (1.53%), Industrials (1.22%), and Real Estate (0.76%).
Among the individual stocks, Curaleaf Holdings Inc (7.19%), Bausch Health Companies Inc (5.94%), Constellation Software Inc (5.50%), TMX Group Limited (3.55%), Brookfield Asset Management Ltd (3.28%), and Franco-Nevada Corporation (2.95%) were the prominent gainers.
Major sectors that lost in today's trading were Consumer Discretionary (0.16%) and Communication Services (1.03%).
Among the individual stocks, Restaurant Brands International Inc (1.22%), Gildan Activewear Inc (0.69%), Quebecor Inc (3.06%), and BCE Inc (1.79%) were the notable losers.
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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.