The S&P/TSX Composite Index rose 1.5% to close at 34,671 on Thursday after US President Donald Trump pulled back from earlier threats of military strikes against Iran, easing geopolitical tensions. The reversal, which came just hours before the strikes were expected to be launched, followed reports that negotiations with Iran had progressed to the highest levels of its leadership and had gained support from a broad coalition of regional powers.
Oil prices declined on the news, alleviating inflation concerns and driving bond yields lower. Financials advanced, led by a 1.6% gain in TD Bank. Mining stocks also strengthened as gold prices climbed, with Agnico Eagle up 3.5% and Barrick gaining 5.3%.
Technology shares benefited from a rebound in semiconductor stocks after recent weakness in the sector, with Shopify adding 2.2% and Celestica jumping 6.1%. Elsewhere, Dollarama surged 9% after posting quarterly sales and earnings that topped expectations.
