Stocks Near Record Highs as Ceasefire Talks Resume

North American stocks pushed toward record highs on Wednesday as negotiations between the United States and Iran prepared to resume and mediators sought to extend a ceasefire set to expire April 22. The potential extension removed much of the energy supply risk premium that had weighed on markets.

Negotiations were scheduled to resume Thursday after a chaotic opening round over the weekend. Mediators are seeking a ceasefire extension, and separate direct talks between Israel and Lebanon — the first since 1993 — are also underway.

Investors pushed equity prices back toward pre-conflict levels. U.S. and Japanese shares rose while the dollar and yen weakened. Oil traders estimated roughly a $20-per-barrel remaining supply premium tied to the conflict.

President Trump told markets and the public, “Iran sent the right people and they want to make a deal.” Negotiators are expected to address nuclear issues when talks resume.

On the economic front, U.S. producer prices came in cooler than expected, signaling a pullback in demand-side inflation even as energy-related supply pressures persist. A recent Supreme Court decision barring the use of IEEPA tariffs removed a measurable boost from reported inflation figures.

Canada reported manufacturing sales rose 3.6% in the latest reading, reversing a 3.0% decline in January. The data supported a modest rebound in the Canadian dollar.

The dollar index has traded in a range, rejecting the 100.00 level and finding interim support near 98.00. Over the past week the U.S. dollar fell against most major currencies, with the Australian and New Zealand dollars among the stronger performers.

The USD/CAD pair broke a 1.38 pivot and is trading inside an intermediate down channel, with 1.3750 identified as a key support level.

Market calendars are light into mid next week, with Canadian inflation data on Monday the main scheduled release. Traders and policymakers continue to monitor incoming economic releases and diplomatic developments tied to the ceasefire talks.