US and Canada Stocks Hit Records on Iran Deal Hopes

North American stock markets reached record highs on August 5, 2026, fueled by optimism that the United States and Iran are nearing a peace agreement to reopen the Strait of Hormuz. Donald Trump stated that an agreement could be reached as early as Wednesday, noting that Iran and Oman are close to a deal. While Iranian media suggested that continued U.S. threats could cause delays, the Dow Jones Industrial Average rose 593.27 points to 54,679.15 and the S&P/TSX Composite climbed 480.44 points to 36,282.03.

In Canada, the market surge was further supported by strong revenue projections from Shopify. However, other sectors faced volatility. SpaceX shares dropped 10% following its first quarterly earnings as a public company, with high AI infrastructure spending impacting cash flow.

Additionally, Advanced Micro Devices shares fell over 8% after Elon Musk announced that SpaceX would stop purchasing AMD processors. Musk stated the company would "build exclusively" on Nvidia's Blackwell AI server architecture, while setting a $1 trillion revenue target for the rocket manufacturer by 2030.