TSX Gains 223 Points as Ceasefire Optimism Lifts Banks and Tech; Energy Drags

The S&P/TSX Composite Index closed Tuesday at 34,102.36, advancing 223 points as investor sentiment improved on signs that the Middle East ceasefire between the U.S., Israel, and Iran was holding. Eight of the twelve TSX subgroups finished higher, with information technology leading at a gain of 3%, followed by financials and gold, each up 1.3%. The TSX Venture Exchange also surged 17.33 points, or 1.7%, to 1,040.01, reflecting broad-based risk appetite across Canadian equities.

The rally was driven primarily by geopolitical relief after Iran confirmed the Strait of Hormuz had been reopened to commercial traffic. That signal eased fears of a prolonged supply disruption, allowing markets to re-price risk assets upward. Canadian bank stocks responded positively, with Brookfield Corp. (TSX: BN) climbing 4.2% to $62.75 and goeasy Ltd. (TSX: GSY) surging 6.5% to $33.56. On the technology side, Celestica (TSX: CLS) jumped 5% to $530.42 on continued AI infrastructure momentum, while MDA Space (TSX: MDA) advanced 7.2% to $46.17, its highest level since August 2025.

The split session — tech and financials rising while energy declined 2.8% — reflects the market’s recalibration around Middle East risk. Energy stocks sold off as oil prices retreated from elevated levels following the ceasefire news, creating a rotation into sectors that had underperformed during the conflict premium period. Investors are recalibrating sector weights, trimming oil-heavy positions and adding to Canadian financial and tech names that benefit from a stabilizing macro backdrop.

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Looking ahead, markets will be watching whether the ceasefire holds past its initial window and whether Iran’s reopening of the Strait proves durable. Upcoming earnings from Waste Connections and Fairfax Financial will be critical in assessing how Canadian corporates have absorbed the geopolitical turbulence.

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A sustained ceasefire would likely maintain upward pressure on TSX financials and technology, while energy stocks face further volatility depending on oil price direction.