04:30 PM EDT, 03/31/2026 (MT Newswires) -- The Toronto Stock Exchange soared Tuesday amid fresh hopes for an end to the Iran war that has cast a shadow over, and dictated movements in financial markets for weeks, while BMO sees "some growth below the surface" in the Canadian economy.

The S&P/TSX Composite Index closed up 833.10 points, or 2.6%, to 32,768.04. Most most sectors were higher, led by Base Metals up near 7%, Health Care up 5.7% and Info Tech up near 4.8%. In contrast, the Battery Metals Index was down 1% and Energy down 0.6%.

According to FactSet going in to today the TSX was month-to-date down 7%, but year-to-date was up 222.18 points or 0.70%.

Optimism returned to markets today after a report from The Wall Street Journal said U.S. President Donald Trump told aides he's willing to end the U.S. military campaign against Iran without forcing the reopening of the Strait of Hormuz. The Associated Press cited a news report from the Middle East quoting Iran's president Masoud Pezeshkian as saying it has "the necessary will to end the war" as long as certain requirements are met.

On the Canadian economy, BMO in a note published just as the markets closed, and reflecting on GDP data for January and February released early today, noted it has grown "just" 0.6% in the past year, But the bank said "there are some noteworthy supports below the surface that are consistent with the broader narrative".

BMO noted real defense service output is up almost 5% from a year ago, as Canada pushes up its spending target; and Infrastructure as measured by engineering and other construction (e.g., highways, utilities, etc.) is up almost 6% from a year ago. "That's consistent with the federal and provincial governments rolling out more infrastructure investment," BMO added.

Data centers. BMO also noted, have contributed to a more than 7% increase in output in the related sector as a few major projects are underway across Canada.

"This isn't enough to drive above-potential growth by any means, partly because some heavyweight sectors, like manufacturing, are contracting outright. But it does help keep the economy grinding ahead," according to BMO.

Of commodities, gold traded up for a third-straight session onTuesday as the dollar and yields fell after Federal Reserve Chair Jerome Powell said the central bank sees no need to raise interest rates despite higher energy prices. Gold for May delivery was up $150.10 to US$4,707.60 per ounce.

But West Texas Intermediate crude oil closed lower Tuesday following reports U.S. President Trump is readying to end the war he and Israel launched against Iran. WTI crude oil for May delivery closed down $1.50 to settle at US$101.38 per barrel, while May Brent oil was down $3.16 to US$104.23.