The Globe and Mail reports in its Thursday, May 7, edition that the S&P 500 and the Nasdaq surged to record high closes on Wednesday, buoyed by signs of a resolution in the Middle East conflict. A Reuters dispatch to The Globe reports that the TSX also gained, though the rally was capped by a big drop in energy stocks. Global stocks rose and oil prices fell after Iran announced it was considering a new U.S. proposal, with reports suggesting that Washington and Tehran were nearing a one-page memorandum to end the war, deferring complex issues like Iran's nuclear program for later. Brent crude futures fell about 8 per cent to $101 (U.S.) a barrel, helping ease concerns about inflationary pressures. The Toronto Stock Exchange's S&P/TSX Composite Index ended up 414.91 points, or 1.2 per cent, at 33,981.82, marking its highest closing level since April 20. The TSX materials sector, including metal mining shares, rose 6.5 per cent as gold prices increased over 3 per cent, reaching a week-long high. Bond yields fell sharply in both the United States and Canada, with the Canadian five-year government bond yield down 11 basis points by late afternoon.