TSX Futures Spike on US-Iran Ceasefire Deal

The S&P/TSX Composite Index surged over 1.5% to above the 33,700 level on Wednesday as a diplomatic breakthrough in the Middle East fueled a global risk asset market rally. President Trump announced a two-week conditional ceasefire that includes reopening the Strait of Hormuz which eased stagflation fears and lowered bond yields. This shift supported financial giants like RBC and TD Bank adding over 2% while tech leader Shopify gained nearly 7% as credit concerns diminished. Gold prices advanced to near three-week highs amid the reassessment of global risks pushing Agnico Eagle and Barrick Gold over 5% higher. Mining stocks also benefited from base metal strength with Lundin Mining and First Quantum posting gains above 9%. Conversely the energy sector faced heavy selling pressure as WTI crude plunged below $95 per barrel resulting in sharp retreats for Canadian Natural Resources, Suncor Energy, and Imperial Oil losing over 6%.

TSX increased to 33858.00 Index Points, the highest since March 2026. Over the past 4 weeks, Canada Stock Market Index (TSX) gained 1.11%, and in the last 12 months, it increased 49.11%.

Futures tracking the S&P/TSX Composite Index spiked on Wednesday after US President Donald Trump announced a temporary ceasefire with Iran. Oil prices fell following the deal, which includes reopening the Strait of Hormuz. The development eased concerns that an energy shock would magnify inflation and force the BoC to maintain restrictive rates, supporting the stock outlook. Lower bond yields reduced credit concerns and supported financial stocks, while lower oil prices pressured energy producers. Gold advanced to a near three-week high as the ceasefire sparked a reassessment of risks, lifting mining stocks.