The Globe and Mail reports in its Wednesday edition that U.S. and Canadian stocks closed higher on Tuesday as risk appetite driven by AI fervour was counterbalanced by tensions arising from U.S.-Iran talks to reopen the Strait of Hormuz and end the months-long war. A Reuters dispatch to The Globe says the Toronto Stock Exchange ended at an all-time high, with heavyweight sectors materials, financials and energy all advancing at least 1.5 per cent. Gains in most of the 11 major S&P sectors kept the S&P 500 and the Dow indexes in the green, with the small-cap Russell 2000 outperforming its larger-cap peers. Small-cap stocks have been some of the biggest beneficiaries of the enthusiasm surrounding artificial intelligence stocks, which provided some upside muscle. Strong results from Hewlett Packard Enterprise and a funding commitment from Alphabet reinforced confidence in the AI buildout. The war has sent crude prices soaring, reviving worries over inflation and giving rise to an increasing likelihood that the U.S. Federal Reserve could hike interest rates by year-end. The S&P/TSX Composite Index closed up 434.57 points, or 1.25 per cent, at 35,169.46, surpassing its last record high on May 25.