Canada’s main stock index rose on Thursday while U.S. markets pushed further into record territory, following a tentative deal between the U.S. and Iran.
“Today’s trading, it really reflects a few things. Obviously, we have large geopolitical issues that are continuing to work their way through market pricing with a lot of hope that we’ll see a truce and ceasefire in the conflict in the Middle East around the Strait of Hormuz,” said Steve Locke, chief investment officer for fixed income and multi-asset strategies at Mackenzie Investments.
“Ultimately, that could lead to some of the capacity to export oil through that region and other chemicals … to help the global economy. I think that’s one of the notes of optimism that’s been circling around the market recently as we see that play out.”
Stocks turned higher after oil prices gave back most of their own morning gains following reports of the tentative U.S.-Iran agreement, which still needs U.S. President Donald Trump’s approval. The agreement would extend the ceasefire in the war by 60 days.
Despite negotiations regarding the conflict being off and on, Locke said there is hope that “as time wears on, the pressure on both Iran and the U.S. to solve the issue and open the Strait of Hormuz is increasing.”
“The market seems to be discounting more optimism that they will reach some kind of lasting truce in the region,” he said.
The S&P/TSX composite index was up 105.65 points at 34,517.70.
In New York, the Dow Jones industrial average was up 24.69 points at 50,668.97. The S&P 500 index was up 43.27 points at 7,563.63, while the Nasdaq composite was up 242.74 points at 26,917.47.
The S&P 500 added 0.6 per cent to its all-time high set the day before after drifting between small gains and losses in the morning.
The July crude oil contract was up 22 cents US at US$88.90 per barrel.
Even with worries about expensive oil and high inflation, the U.S. stock market has run to records largely because U.S. companies keep making more money. Stock prices tend to follow the path of corporate profits over the long term, and companies have been routinely topping analysts’ expectations for the first three months of 2026.
Locke said that recently, corporate earnings in the U.S. have been “exceptionally strong.”
Separately, Canada’s largest banks say they’re cautiously optimistic after reporting earnings that beat expectations, with executives confident they’re well-equipped to handle potential risks in the Canadian economy.
Locke said that in general, financial services businesses have been performing well. At the large banks, he said capital markets groups have been “contributing very positively” to earnings.
The Canadian dollar traded for 72.42 cents US compared with 72.30 cents US on Wednesday.
The August gold contract was up US$50.90 at US$4,532.40 an ounce.
This report by The Canadian Press was first published May 28, 2026.
Daniel Johnson, The Canadian Press.
