Wall Street soared on Wednesday, powered by a potent mix of artificial intelligence optimism and progress in US-Iran peace negotiations. The Dow Jones Industrial Average jumped 448 points (0.91%), the S&P 500 gained 0.74%, and the Nasdaq Composite led with a 0.85% climb, extending a robust winning streak.
Advanced Micro Devices (AMD) emerged as a central driver after reporting first‑quarter results that crushed expectations. Data‑center sales skyrocketed 57% year‑over‑year, and CEO Lisa Su forecast the market for AI data‑center CPUs could reach $120 billion by 2030. AMD shares rallied 20%, while Super Micro Computer surged 15% following a stronger‑than‑expected fiscal Q3 profit and upbeat revenue guidance. The enthusiasm lifted the entire semiconductor sector, with Intel up 6.3% and the VanEck Semiconductor ETF rising 4%.
Geopolitical relief further fueled risk appetite. Reports that the US and Iran are nearing a peace deal – possibly including a nuclear enrichment moratorium and reopening the Strait of Hormuz – sent oil prices tumbling. West Texas Intermediate crude fell 10% to just above $91 a barrel, and Brent dropped 9% to near $100. Energy stocks were hit hard: Occidental Petroleum lost 8.5%, Chevron 5.1%, and Exxon 4.4%.
Artificial intelligence momentum remained a key pillar. Nvidia added 2%, Alphabet rose 1.5%, and Arm Holdings climbed 11% ahead of its earnings. The rally was broad, with Uber up 9.3% on strong bookings, Disney advancing 4.9% in its first earnings under new CEO Josh D’Amaro, and cruise lines benefiting from lower fuel costs.
President Trump tempered expectations late in the day, calling a deal “a big assumption” and warning of intensified bombing if talks fail. Still, the overall tone stayed bullish, supported by robust earnings trends and hopes that reduced geopolitical tension would keep energy costs in check.
