Canadian Stocks Edge Higher, U.S. Indexes Hit New Records Amid De-escalating Iran Tensions Canada's S&P/TSX composite index closed in positive territory while the S&P 500 and Nasdaq reached new all-time highs as investors gained confidence that the global economy would avoid the worst outcomes from the conflict with Iran. Positive sentiment was bolstered by expectations of a continued ceasefire and renewed diplomatic efforts. Canada's primary stock market indicator concluded Wednesday's trading session on an upward trend, mirroring positive sentiment that also propelled the S&P 500 and Nasdaq to new record highs in the United States. This optimistic market performance is largely attributed to growing expectations that the global economy may successfully navigate the conflict with Iran without succumbing to a dire worst-case scenario. Sadiq Adatia, chief investment officer at BMO Global Asset Management, characterized Wednesday's trading as generally positive, observing that market momentum remained robust. He indicated that investors were heartened by the perceived de-escalation of the Iran-U.S. situation, suggesting that the most severe potential outcomes might be behind them. Consequently, the market is refocusing on fundamental economic drivers, a development Adatia considers a healthy sign. The S&P/TSX composite index saw a modest increase of 53.63 points, closing at 34,155.99. Across the border in New York, the Dow Jones industrial average experienced a slight decline of 72.27 points, settling at 48,463.72. However, the S&P 500 index surged by 55.57 points to reach 7,022.95, while the Nasdaq composite posted a significant gain of 376.93 points, ending the day at 24,016.02. The S&P 500’s advance of 0.8 percent allowed it to surpass its previous all-time high established in January. After a substantial downturn of nearly 10 percent from its peak in late March, a drop that met the Wall Street definition of a correction, the index, which holds considerable weight in many retirement savings accounts, has since demonstrated a remarkable recovery, climbing more than 10 percent. A significant driver of this resurgence has been the anticipation of easing geopolitical tensions and the restoration of unimpeded oil flow from the Persian Gulf to global markets. These hopeful projections received further support on Wednesday when regional officials informed The Associated Press of an in-principle agreement between the United States and Iran to extend a ceasefire. This extension is intended to facilitate continued diplomatic efforts. It is important to acknowledge, however, that stock markets remain susceptible to renewed volatility. Any indication that these expectations are not being met could trigger a swift reversal in market sentiment, a pattern that has been observed previously during periods of conflict. The fluctuating price of oil throughout Wednesday underscored the inherent caution present in financial markets. Major stock indexes globally also exhibited only moderate movements, particularly in light of their substantial gains in recent weeks. The price of Brent crude, the international benchmark for oil, edged up by 0.1 percent to close at US$94.93 per barrel. While this price remains elevated compared to the approximately US$70 per barrel recorded before the conflict, it represents a decrease from the peak of US$119 reached when anxieties surrounding the hostilities were at their zenith. Adatia suggested that the positive performance of Canadian technology stocks was likely influenced by trends in the U.S. market, where a broad rebound is currently boosting technology sectors across all geographical regions. Conversely, BRP Inc. was among the notable decliners on the Canadian stock market, experiencing a significant drop of 35.37 percent for the day. The company announced the suspension of its financial outlook, citing the impact of revised U.S. tariff regulations, which are projected to cost the manufacturer of Ski-Doo and Sea-Doo products approximately half a billion dollars. Adatia commented that investors are currently prioritizing developments related to the Iran situation over the implications of tariffs. He anticipates that attention will shift back to trade-related issues once the geopolitical landscape stabilizes. The June gold contract experienced a decline of US$26.50, settling at US$4,823.60 per ounce. This report was originally published by The Canadian Press on April 15, 2026