Canadian and U.S. stock markets rise on hopes of an end to Iran war

The TSX is shown on a business news ticker is seen in the Financial District in Toronto. THE CANADIAN PRESS/Cole Burston

TORONTO — Canadian and U.S. stock markets rose on Wednesday amid hopes of a possible end to the U.S.-Iran war. 

“Every single day in the last couple of weeks seems almost the same; it’s like Groundhog Day repeating itself. It really comes down to how close we are to a ceasefire or an end to the hostilities or an end to the war in general and a reopening of the Strait of Hormuz,” said Philip Petursson, chief investment strategist at IG Wealth Management. 

The S&P/TSX composite index was up 441.01 points at 32,382.60.  

In New York, the Dow Jones industrial average was up 305.43 points at 46,429.49. The S&P 500 index was up 35.53 points at 6,591.90, while the Nasdaq composite was up 167.93 points at 21,929.83.

The May crude oil contract was down US$2.03 at US$90.32 per barrel.

The United States delivered a plan to pause the war to Iran. Meanwhile, Iran’s foreign minister, Abbas Araghchi, said in an interview with Iranian state TV that his government has not engaged in talks to end the war, “and we do not plan on any negotiations.”

Petursson said markets have been focusing on the positive commentary from U.S. President Donald Trump over the past 24 hours, “and that’s flowing into the equity markets and I would say the commodity markets at the same time.” 

Iran also launched more attacks on Israel and Gulf Arab countries, including an assault that sparked a huge fire at Kuwait International Airport, while coming under attack itself. The U.S. military deployed paratroopers and more Marines to the region.

Optimism, though, was nevertheless evident in financial markets worldwide. 

Petursson said the level of optimism in the market is commensurate with some of the more recent developments, noting the TSX was only up a little over one per cent. 

“This is, I think, suggesting that we are closer to an off-ramp. It seems there is a very strong willingness on the part of President Trump to come to a conclusion to this,” he said. 

“This is what we’ve noticed: once he starts down the path of this type of commentary, he doesn’t seem to flip-flop. He pushes … and then when he backs off, he backs off, so that, I think, is what the market is pricing in right now.” 

In the Canadian stock market, all sectors were positive, with basic materials leading the gains.   

The April gold contract was up US$150.30 at US$4,552.30 an ounce on Wednesday but is still lower than its recent high near US$5,400. 

“Gold has been on a bit of a downslide and in a way, surprisingly so, in that it hasn’t been playing its safe haven status during this conflict,” Petursson said. 

“But it popped a little bit today, up a couple of percentage points and the miners that have been taken down alongside gold, they’re seeing a little bit of a relief rally as well.”  

The Canadian dollar traded for 72.46 cents US compared with 72.67 cents US on Tuesday.

This report by The Canadian Press was first published March 25, 2026.

Daniel Johnson, The Canadian Press. With files from The Associated Press.