Stocks surged on Wednesday as a one-two punch of geopolitical optimism and stellar earnings from the artificial-intelligence complex sent all three major indexes to record closes. Reports that the United States and Iran are nearing an agreement to restore trade through the Strait of Hormuz lifted sentiment across the board, while a batch of blowout results from chipmakers gave the technology sector an extra jolt higher.
What Moved Markets
The S&P 500 (SPI:SP500) climbed 105.88 points, or 1.46%, to finish at 7,365.10. The Dow Jones Industrial Average added 612.34 points, or 1.24%, closing at 49,910.59 and putting the blue-chip gauge within striking distance of the 50,000 milestone. The Nasdaq Composite led the way with a 2.02% gain, ending near 25,839. The small-cap Russell 2000 also joined the party, rising roughly 1.5% to notch its own record.
The primary catalyst was a report that Washington and Tehran are close to agreeing on a memorandum that would include a moratorium on nuclear enrichment and reopen shipping lanes in the Persian Gulf. Crude oil prices slid on the news, relieving pressure on input costs and giving consumer-facing sectors a lift. Every sector in the S&P 500 finished in the green except energy producers, which fell as traders priced in the prospect of increased global supply.
Notable Movers
Advanced Micro Devices (AMD) rocketed roughly 20% after the chipmaker crushed first-quarter estimates and raised its full-year guidance, citing soaring demand for data-center GPUs used in AI workloads. The results reaffirmed investor confidence in the durability of the AI infrastructure buildout.
Super Micro Computer (SMCI) surged about 15% after the AI server maker topped profit expectations, even as revenue came in slightly below consensus. The stock’s move underscored the market’s willingness to reward any company demonstrating a credible seat at the AI table.
Walt Disney Co. (DIS) jumped roughly 8% after second-quarter earnings and revenue beat estimates. Strength in the streaming division and resilient parks attendance drove the upside surprise, giving the entertainment giant its best single-day performance of the year.
Shopify (SHOP) tumbled about 15% despite beating top-line expectations with 34% revenue growth. The selloff came after the e-commerce platform issued a softer-than-expected full-year outlook and missed on earnings per share, reminding investors that valuation still matters even when revenue growth is robust.
CDW Corp. (CDW) dropped nearly 20% after the IT solutions provider posted disappointing operating income in the first quarter, with margins coming under pressure despite solid demand trends across the technology sector.
Looking Ahead
Investors will be watching closely for any formal announcement on the Iran talks, which could set the tone for energy markets and broader risk appetite in the sessions ahead. On the earnings front, the calendar remains packed with reports from several large-cap names later this week. Meanwhile, the Federal Reserve’s next policy statement is approaching, and traders will be parsing economic data for clues on whether the central bank sees enough progress on inflation to signal its next move. With the Dow knocking on the door of 50,000 and the S&P 500 deep in record territory, any stumble in the peace negotiations or an earnings miss from a market heavyweight could provide an excuse for profit-taking.