Gaining the ground lost yesterday, Canadian stocks advanced on Friday as Iran is reviewing the U.S. peace proposal to end the war and reopen the Strait of Hormuz, boosting market sentiments and easing inflationary pressure.
After opening above yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly positive throughout the session before settling at 34,077.76, up by 221.14 points (or 0.65%).
Five of the 11 sectors posted gains today, with the materials sector leading the pack.
The ongoing gulf crisis continues to impact the Canadian and the U.S. stock markets.
Days before, the U.S. offered Iran a draft proposal with 14 key points which Iran continues to review. If Iran agrees to the plan, the U.S. will halt the war immediately in return for Iran's reopening the Strait of Hormuz.
Both nations would discuss future course of negotiations to end hostilities, over a 30-day timeline. U.S. Secretary of State Marco Rubio stated that the U.S. is anticipating a response from Iran by today.
The prospects of an end to the war and reopening of the Hormuz strait eased conflict tensions and brought the much-needed relief to markets yesterday and today.
In an attempt to assert its full control over the Strait of Hormuz, Iran's Islamic Revolutionary Guard Corps had reportedly laid out fresh rules for vessels attempting to move across the Strait of Hormuz.
The IRGC's plan, entitled "Vessel Information Declaration," was issued by the recently created Persian Gulf Strait Authority of Iran. The document consists of more than 40 questions for shippers to fill up.
In a social media message, Iran's Supreme Leader Mojtaba Khamenei called for a "new regional order" under a strong Iran.
Meanwhile, U.S. Central Command announced intercepting Iran's attacks on three navy ships yesterday as an act of self-defense. Not attaching much importance to this skirmish, Trump assured that the ceasefire holds despite these events.
In a message via Truth Social, Trump reiterated that the U.S. would knock Iran more violently if they do not get the deal signed "fast."
Last month-end, the Bank of Canada stated that it might intervene and increase interest rates if oil prices stayed higher and pushed inflation further.
However, as the domestic jobs data has thrown a surprising decline in employment, investors are rethinking their bets on further rate hikes for this year.
Data released by Statistics Canada today revealed that the unemployment rate in Canada rose to 6.90% in April from 6.70% in the previous month, far exceeding expectations that it would remain unchanged at 6.70%, to mark the highest jobless rate in six months.
Employment in Canada edged down by 18,000 in April following a gain of 14,000 in the prior month and missing forecasts for a 15,000 increase.
Full-time employment fell by 47,000, while part-time positions increased by 29,000.
On the earnings front, Enbridge Inc., an energy infrastructure company, reported its earnings for Q1 2026.
The Quarterly earnings decreased to C$1.67 billion or C$0.77 per share from C$2.26 billion or C$1.04 per share of last year. Additionally, the energy company declared a quarterly dividend of C$0.97 per share payable on June 1, to shareholders of record on May 15.
Major sectors that gained in today's trading were Materials (3.29%), Consumer Discretionary (1.10%), Consumer Staples (0.52%), Financials (0.46%), and Energy (0.10%).
Among the individual stocks, B2Gold Corp (7.25%), Teck Resources Limited (6.82%), First Quantum Minerals (6.00%), Wheaton Precious Metals Corp (5.74%), and Aritzia Inc (4.47%) were the prominent gainers.
Major sectors that lost in today's trading were Healthcare (0.12%), IT (0.35%), Industrials (0.43%), and Real Estate (0.64%).
Among the individual stocks, Computer Modelling Group Ltd (4.80%), Coveo Solutions Inc (2.34%), Tecsys Inc J (2.33%), Brookfield Business Corporation (7.96%), Exchange Income Corporation (5.66%), and Atkinsrealis Group Inc (3.95%) were the notable losers.
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Market Analysis
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.