The S&P/TSX Composite Index rose nearly 1% to trade above the 35,500 mark on Tuesday after Monday's Civic Holiday, supported by lower oil prices and broad-based gains.
Crude prices fell after US President Donald Trump canceled planned strikes on Iran to revive negotiations, easing concerns about inflation and the higher interest rate outlook.
Financial stocks advanced, with RBC, TD Bank, BMO, CIBC, and Scotiabank all gaining about 1%.
Brookfield Asset Management jumped more than 6% after completing its acquisition of Oaktree.
Meanwhile, firmer gold and copper prices fueled a rally in mining shares, with Agnico Eagle up over 5%, Barrick adding nearly 5%, WPM rising more than 6%, and Franco-Nevada, Teck Resources, First Quantum, Lundin Mining and other peers climbing between 3% and 10%.
Shopify gained nearly 1.5% ahead of earnings on Wednesday.
In contrast, energy stocks declined on weaker oil prices, with Suncor and Canadian Natural down 4%.