Advanced Micro Devices soared to an all-time high after forecasting quarterly revenue above expectations on robust demand for its data center chips.
Shares of rival Intel also gained, while the PHLX chip index rallied, bringing its 2026 gain to around 60%.
Global stocks surged and oil prices slumped after Iran said it was reviewing a new U.S. proposal, while sources said Washington and Tehran were closing in on a one-page memorandum to end the war, while leaving tricky issues such as Iran’s nuclear program for later.
Brent crude futures fell about 8% to $101 a barrel, helping ease concerns about inflationary pressures.
Wall Street has surged in recent weeks, with investors looking beyond the Middle East conflict and instead focusing on a strong first-quarter earnings season that has been driven by AI-related companies. S&P 500 companies are on track for their strongest profit growth in more than four years. Over 80% of S&P 500 companies that reported through May 1 have exceeded analysts’ profit estimates, according to LSEG I/B/E/S data. “The economy is chugging along just fine. There’s no real danger signs of something that’s even close to approaching a downturn. And so with that as a backdrop, you have to own stocks,” said Thomas Martin, senior portfolio manager at Globalt Investments.
Corning surged after saying it was partnering with Nvidia to expand U.S. production of optical connectivity products used in AI data centers. Nvidia also climbed.
Hut 8 soared after the AI data center developer signed a 15-year lease worth $9.8 billion for its Beacon Point data center campus in Texas.
According to preliminary data, the S&P 500 gained 104.46 points, or 1.45%, to end at 7,364.72 points, while the Nasdaq Composite gained 508.76 points, or 2.01%, to 25,834.88. The Dow Jones Industrial Average rose 603.51 points, or 1.22%, to 49,909.55.
U.S. private payrolls posted their largest increase in 15 months in April, pointing to continued labor market stability even as the conflict with Iran clouds the economy’s outlook.
Investors were awaiting the more comprehensive non-farm payrolls report on Friday, with U.S. jobs seen increasing by 62,000 in April after rebounding 178,000 in March, according to a Reuters survey of economists.
St. Louis Federal Reserve President Alberto Musalem said the risks to monetary policy have shifted toward higher inflation, possibly requiring interest rates to stay on hold for some time amid a seemingly stable job market.
Walt Disneyrose after the entertainment firm beat estimates for second-quarter results and as investors got a glimpse of CEO Josh D’Amaro’s growth strategy for the company.
Uber Technologiesgained after the ride-hailing and delivery platform forecast strong second-quarter bookings.
Super Micro rallied following a stronger-than-expected forecast for fourth-quarter revenue and adjusted profit.
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