Canada's benchmark stock index rose on Friday as global risk sentiment improved on hopes of an imminent Middle East deal, with a source telling Reuters that a U.S.-Iran memorandum could be signed as early as Sunday.
The TSX Composite Index hiked 383.20 points, or 1.1%, to move into Friday afternoon at 35,054.66 On the week so far, the index has grown 286 points, or 0.8%.
The Canadian dollar inched up 0.04 cents to 71.60 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.
The materials group, which includes stocks of metal miners, was up leading gains on the TSX, with Montage Gold hurtling $1.30, or 9.1%, higher to $15.54, Taseko Mines up 82 cents, or 8.6%, to $10.34, and Ivanhoe Mines up 53 cents, or 4.7%, $11.85.
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 9.39 points, or 1%, to 955.96. On the week so far, the index is catching up, but still trails last week’s close by 0.65 points.
All but two of the 12 TSX subgroups gained ground, led by materials, sprinting 2.7%, gold up 2.2%, and financials, ahead 1.3%.
Energy docked 0.6%, while telecoms dived 0.2%.
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 rocketed 547.23 points, or 1.1%, to move into noon hour EDT at 51,395.98.
The much broader index gathered 59.89 points to 7,454.19.
The NASDAQ changed direction and shot higher 193.59 points to 26,003.24.
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 4.48% from Thursday’s 4.46%. Treasury prices and yields move in opposite directions.
Oil prices backtracked $3.28 to $84.43 U.S. a barrel.
Gold prices moved forward $125.10 to $4,239.10 U.S. an ounce.
