Market Reaction
Investors pushed the S&P/TSX 60 index up 12 points (0.6%) by 12:18 ET (16:18 GMT) and lifted the broader TSX composite 0.8% to close at 34,937.85, a gain of 331 points that left the market near its all‑time high. The rally was driven largely by optimism surrounding a preliminary peace agreement between the United States and Iran.
Peace Deal Details
The United States and Iran announced an interim memorandum of understanding intended to end a three‑month‑long war, with the formal signing scheduled in Switzerland on Friday. Pakistani Prime Minister Shehbaz Sharif, acting as a frequent mediator, said the two nations declared the immediate and permanent termination of military operations on all fronts, including Lebanon. While neither side released specific terms, Tehran indicated the agreement would not take effect until the signing. President Donald Trump asserted the deal would halt hostilities, reopen the Strait of Hormuz – a chokepoint that previously carried roughly one‑fifth of global oil supplies – and lift the longstanding U.S. naval blockade of Iranian ports.
Commodity and Currency Impact
Following the announcement, Brent crude futures dropped 4.79%, easing concerns about a prolonged energy‑driven inflation spike. Spot gold surged 2.46% (with gold futures up 2.49%), reaching its highest level since June 9 and marking a third consecutive session of gains; the rally was supported by a weakening U.S. dollar that fell to a 10‑day low against a basket of major currencies. U.S. Treasury yields also retreated, with the 10‑year note (TNX) rising 0.54% as bond prices climbed.
U.S. Equity and Space‑Sector Highlights
U.S. equities rallied sharply, propelled by tech‑led gains in European and Asian markets. SpaceX shares leapt above their IPO price of $135, valuing the company at more than $2 trillion and placing it among the largest publicly listed U.S. firms. Fellow space‑industry stocks Rocket Lab and Planet Labs also rallied on the back of the flotation excitement, despite analysts flagging concerns about SpaceX’s fundamentals.
Monetary‑Policy Outlook
The CME FedWatch Tool shows market participants now assign a 49% probability to a Federal Reserve rate hike by December, down from 69% a week earlier. The Fed is expected to keep policy rates unchanged at the conclusion of its two‑day meeting on Wednesday, with growing bets that any future tightening may be deferred until later in 2026. Earlier expectations of rate cuts this year have been largely erased after recent data indicated accelerating inflation. Analysts at Vital Knowledge noted that the easing bias is likely to be removed from the FOMC statement, but highlighted that new Fed Chair Kevin Warsh could influence a more dovish tone during the post‑decision press conference if the Iran conflict is resolved promptly.
Publication Details
The article, authored by Scott Kanowsky for Reuters’ Stock Market desk, was first published on 15‑06‑2026 at 05:40 pm and updated at 09:54 pm the same day.