Canada's main stock index opened higher on Friday as global risk appetite improved on hopes of a Middle East deal, with a Western source telling Reuters that a U.S.-Iran memorandum could be signed as early as Sunday.
The TSX Composite Index picked up 208.47 points, or 1.5%, to begin Friday at 34,879.93. On the week so far, the index has grown 111 points, or 0.3%.
The Canadian dollar dipped 0.01 cents to 71.56 cents U.S.
The deal, if it goes through, could end the over three-month-old war that has pushed energy prices sharply higher and stoked inflation fears after Iran all but closed the Strait of Hormuz for shipping.
Still, investors remain cautious, as Trump has repeatedly suggested in the past that the two sides were nearing a peace agreement, only for no deal to materialize.
Meanwhile, Canada will invest more than $1 billion to promote competition among grocers and food processors, Prime Minister Mark Carney said on Thursday, adding that efforts to combat high food inflation would also enhance national security. Canada has one of the highest food inflation rates among Group of Seven countries.
On the economic slate, Statistics Canada reports 183,921 new motor vehicles sold in Canada in April, decreasing 6.0% from April 2025.
In dollar terms, sales decreased 1.7% in April 2026 compared with one year earlier. Over the same period, the number of new trucks sold decreased (-6.4%), while the number of new passenger cars sold experienced a smaller decline (-2.7%).
ON BAYSTREET
The TSX Venture Exchange recovered 4.85 points to 951.42. on the week so far, the index trails last week’s close by 5.1 points.
All but two of the 12 TSX subgroups gained ground, led by materials, up 2%, while gold hiked 1.6%, and health-care tallied 1.3%.
Information technology faded 1.1%, and industrials eked downward 0.01%.
ON WALLSTREET
The S&P 500 rose on Friday as investors waited for a potential peace deal between the U.S. and Iran, and geared up for the SpaceX IPO.
The Dow Jones Industrials gained 137.14 points to kick off the Friday session at 50,985.89.
The much broader index edged up 10.1 points to 7,404,40
The NASDAQ removed 25.19 points to 25,784,47.
Stocks had earlier turned lower, and oil came off it’s lows of the session after President Donald Trump warned in a Truth Social post that Iran “better get their act together” even as a supposed deal was on the table. West Texas Intermediate crude futures were last 1% lower at around $87 a barrel.
Iranian state media reported that the draft version of the Iran-U.S. memorandum of understanding includes a commitment from the U.S. to lift oil sanctions, as well as a commitment from Iran to reopen the Strait of Hormuz.
A peace deal could be signed in Switzerland as soon as Sunday, Bloomberg reported Friday, citing people familiar with the plans.
Friday’s moves come after a rally on Thursday, thanks to a rebound in chip stocks and President Donald Trump signaling that a peace deal with Iran was near.
Traders are also watching SpaceX, Elon Musk’s rocket maker, as it debuts on the Nasdaq. SpaceX, set to go public under the ticker symbol SPCX, has set a fixed price of $135 per share, which would put its valuation at $1.77 trillion.
The company plans to sell 555.6 million shares, amounting to a $75 billion fundraise that would be the largest initial public offering in history. It’s more than triple the size of Alibaba’s $22 billion offering in 2014, currently the biggest U.S. IPO to date.
If the IPO goes according to plan, it could offer a major catalyst for stocks on Friday. SpaceX perpetual futures suggest that the stock will pop around 30% after its debut.
A number of space-related stocks declined ahead of the IPO. Rocket Lab shares slid 9%, while shares of EchoStar — a company that has a stake in SpaceX — dropped 8%.
Prices for the 10-year Treasury faded, boosting yields to 4.50% from Thursday’s 4.46%. Treasury prices and yields move in opposite directions.
Oil prices backtracked $1.24 to $86.47 U.S. a barrel.
Gold prices moved forward $96.80 to $4,210.80 U.S. an ounce.
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