Canadian stocks jumped sharply on Thursday as investors looked past geopolitical tensions and newly proposed U.S. tariffs on certain Canadian exports, focusing instead on signs of progress in U.S.-Iran negotiations and improving global market sentiment. The S&P/TSX Composite Index climbed 416 points, or 1.2%, to close at a fresh record high of 35,217, recovering all of the previous session’s losses and extending its strong 2026 rally to over 11%.
While all key TSX sectors ended the session in positive territory, the rally was mainly driven by solid gains in healthcare, financial, and industrial stocks, with improving risk appetite helping investors rotate back into economically sensitive areas of the market.
Top TSX Composite movers and active stocks
Curaleaf, Bausch Health Companies, and Constellation Software were the day’s top-performing TSX stocks, as they surged by at least 5.5% each.
Descartes Systems Group (TSX:DSG) also climbed by more than 5% to $108.34 per share, making it among the day’s top gainers on the Toronto Stock Exchange. This rally in DSG stock came after the Waterloo-headquartered software provider reported record April quarter results.
During the quarter, Descartes’s revenue rose 15% year-over-year to US$193.6 million, while net profit jumped 34% to US$48.5 million. The company’s strong profitability, growing cash flow, and continued demand for its logistics and supply chain software solutions gave investors a reason to cheer. On a year-to-date basis, however, DSG stock is still down 10%.
In contrast, shares of TransAlta (TSX:TA) plunged by 10.4% after the power producer announced a $350 million bought-deal common share offering to help fund its US$1 billion acquisition of two natural gas-fired power facilities in Colorado.
While the deal is expected to help TransAlta add about US$80 million in annual adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and US$33 million in free cash flow, investors remained concerned about the potential dilution from the new share issuance.
Transcontinental, Celestica, and Energy Fuels also fell by at least 3.9% each, making them among the session’s worst-performing TSX stocks.
Based on their trade volume, Canadian Natural Resources, Suncor Energy, BlackBerry, Enbridge, and Barrick Mining were the five most active stocks on the exchange.
TSX today
Oil and gas prices were mixed in early morning trading on Friday, while metals prices across the board fell sharply. These commodity price moves could create a negative backdrop for the resource-heavy TSX at the open today, with weakness expected in mining stocks.
Canadian investors will closely monitor jobs reports from both sides of the border this morning, as the data could provide fresh insight into labour market strength and influence expectations for future interest rate decisions.
At the same time, TSX investors may also keep an eye on fresh Middle East headlines after reports of an explosion near Oman’s Mina al Fahal oil terminal and renewed clashes between Israel and Hezbollah raised questions about the durability of recent ceasefire efforts. Any disruption to regional energy infrastructure or shipping routes could quickly affect crude prices and influence sentiment toward Canadian energy stocks.
Market movers on the TSX today
