The S&P/TSX Composite Index climbed more than 1.5% on Wednesday, breaking above the 32,400 level, as renewed optimism over a potential diplomatic resolution in the Middle East sparked a broad-based rally.
Financials led the advance, with Royal Bank of Canada and Bank of Montreal each adding around 1%, supported by declining bond yields and receding energy-driven inflation concerns, which improved the credit outlook. Gold miners also outperformed: Agnico Eagle Mines gained more than 4%, while Kinross rose 4.5% amid a softer US dollar and resilient bullion prices.
Sentiment in the technology sector improved as well, with Shopify advancing over 3.5%. Dollarama added 1.8% after CIBC upgraded the stock to “outperformer.” By contrast, energy producers came under pressure as crude oil prices fell about 6%, dragging Suncor Energy and Imperial Oil down nearly 1%.
