The S&P/TSX Composite Index jumped 2.6% to close at 32,768 on Tuesday, as growing optimism over a potential diplomatic resolution to the Middle East conflict fueled a broad-based rally in risk assets. Despite the strong rebound in the final session, the benchmark still finished March down 4.6%, capping a fifth straight week of war-driven volatility.
Technology shares were notable laggards over the quarter, with the information technology subindex plunging more than 26% as investors rotated into energy producers amid surging crude prices. Shopify rose 6% on the day but remains nearly 30% lower for the year, pressured by concerns over AI-related disruption and persistent regional instability.
Domestic sentiment was further bolstered by preliminary GDP figures showing a third consecutive month of expansion in February, complemented by solid gains in financials. Royal Bank of Canada and TD Bank advanced 2.3% and 1.9%, respectively, while Agnico Eagle Mines climbed 5.8%.
