S&P 500 and Nasdaq Hit Closing Highs as Iran Deal Hopes Sink Oil, AMD Surges

CNBC reported Wednesday that the S&P 500 closing high marked a fresh milestone as improving Iran ceasefire prospects and blowout chip earnings powered a broad market advance.

The Dow Jones Industrial Average climbed 528 points, or 1.1%, by midday. The S&P 500 gained 1.2% and the Nasdaq Composite rose 1.6%, both hitting intraday and closing records.

Iran Ceasefire Hopes Drive the Rally

Reports emerged Wednesday that Washington and Tehran were edging toward a formal agreement to end the conflict. The reported deal would include a moratorium on nuclear enrichment activities. An Iranian foreign ministry spokesperson confirmed to CNBC that Tehran was reviewing a U.S. proposal for a resolution.

President Donald Trump later tempered expectations, writing on Truth Social that a deal was “perhaps, a big assumption.” He warned that military action would resume at a higher intensity if no agreement materialized. Equity prices retreated from session peaks following that post. Trump also separately announced he was pausing “Project Freedom,” the U.S. initiative to escort vessels through the Strait of Hormuz, citing meaningful diplomatic progress.

Oil Takes a Heavy Hit

Crude markets bore the brunt of the geopolitical optimism. West Texas Intermediate futures dropped roughly 6%, trading above $95 per barrel. International Brent shed approximately 7%, hovering just above $101.

Bill Northey, investment director at U.S. Bank Asset Management Group, told CNBC that a genuine halt to hostilities and the reopening of the Strait of Hormuz could protect Europe and Southeast Asia from deeper economic stress. He added that such an outcome would “set up a snapback in equity markets.”

AMD Earnings Supercharge Chip Stocks

Chipmaker Advanced Micro Devices was a standout performer, surging roughly 17% after delivering first-quarter results that topped analyst forecasts on both revenue and profit. The company’s second-quarter guidance also exceeded Wall Street expectations. The broader semiconductor sector tracked AMD higher. The VanEck Semiconductor ETF jumped 4% and Intel added 2%.

Background: A Market Recovering From Months of Volatility

U.S. equities had spent much of early 2026 navigating turbulence tied to the Iran conflict, which rattled energy markets and supply chains. The Strait of Hormuz disruption pushed oil above $100 per barrel for a sustained stretch, squeezing household budgets. A New York Fed study published Wednesday found lower-income households earning under $40,000 annually cut fuel consumption by 7% during the March price spike. Higher-income earners absorbed the cost with far smaller behavioral changes, raising gas spending by 19% while barely reducing usage.

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