TORONTO — Canada’s main stock index was up more than 380 points in early-afternoon trading, while the price of oil dropped below US$100 per barrel after Iran, the United States and Israel agreed to a two-week ceasefire.
“It’s really a geopolitical relief rally,” said Anish Chopra, managing director with Portfolio Management Corp.
He said the recent development is quelling some of the fears investors had related to oil shock risks and inflation.
“With the geopolitical situation better as a result of the U.S.-Iran ceasefire, you’ve got an increase in risk appetite, so the risk-on sentiment is back in equity markets,” Chopra said.
The S&P/TSX composite index was up 383.94 points at 33,621.46.
In New York, the Dow Jones industrial average was up 1,199.53 points at 47,783.99. The S&P 500 index was up 156.58 points at 6,773.47, while the Nasdaq composite was up 628.21 points at 22,646.06.
As Iran continued attacks in the region overnight, Derek Holt, head of capital markets economics at Scotiabank, said in a note that uncertainty remains regarding the path forward.
“But for now, it’s the everything rally — except for commodities. Position-covering may be amplifying the swings and driving somewhat of an overreaction,” he said.
The May crude oil contract was down US$17.70 at US$95.26 per barrel as the deal includes the reopening of the Strait of Hormuz, though details of how tanker traffic would resume were unclear.
“At the end of the day, falling oil prices are certainly positive for the economy, especially after they’ve gone up as much as they had,” Chopra said.
The Canadian dollar traded for 72.21 cents US compared with 71.91 cents US on Tuesday.
The June gold contract was up US$89.10 at US$4,774.40 an ounce.
This report by The Canadian Press was first published April 8, 2026.
— With files from The Associated Press.
Companies in this story: (TSX: GSPTSE, TSX: CADUSD)
Daniel Johnson, The Canadian Press
