S&P 500 and Nasdaq Close at Record Highs as Iran Deal Hopes Sink Oil

CNBC reported Wednesday that the S&P 500 record high was achieved as all three major U.S. indexes closed sharply higher. The Dow Jones Industrial Average gained 675 points, or 1.4%. Both the S&P 500 and the Nasdaq Composite advanced 1.4% and 1.8% respectively, reaching fresh intraday and closing records.

Iran Talks Fuel the Afternoon Surge

Sentiment shifted decisively after Axios cited sources saying Washington and Tehran were nearing an agreement to end their conflict. The reported deal would include a moratorium on Iranian nuclear enrichment. An Iranian foreign ministry spokesperson separately confirmed to CNBC that Tehran was assessing a U.S. proposal.

Markets pared some gains after President Donald Trump injected caution via Truth Social. He described a final agreement as “a big assumption” and warned that military action at greater intensity would follow if talks collapsed. Still, Trump also announced a pause to “Project Freedom,” the U.S. plan to escort vessels through the Strait of Hormuz, citing meaningful progress in negotiations.

Oil Prices Take a Sharp Hit

Crude markets bore the brunt of the optimism. West Texas Intermediate futures fell roughly 6%, trading just above $95 per barrel. International Brent crude dropped 7%, hovering above $101. Energy was the worst-performing S&P 500 sector, sliding 4.2%.

Bill Northey, investment director at U.S. Bank Asset Management Group, told CNBC that a genuine halt to hostilities and a reopening of the Strait of Hormuz could shield economies in Southeast Asia and Europe from deeper slowdowns. He called the scenario the setup for “a snapback in equity markets.”

AMD Earnings Turbocharge the Tech Bid

Advanced Micro Devices was the session’s standout single-stock story. Shares surged 17% after the chipmaker topped first-quarter estimates on both revenue and earnings. AMD’s guidance for the second quarter came in well above Wall Street expectations. The move lifted the broader semiconductor space, with the VanEck Semiconductor ETF climbing 4% and Intel adding 2%.

Background: A Market Climbing a Wall of Worry

U.S. equities have navigated a turbulent stretch marked by elevated energy costs tied to the Iran conflict. New York Fed research published Wednesday underscored the economic strain. Lower-income households earning under $40,000 cut fuel consumption by 7% during the March price spike. Higher-income groups barely adjusted usage. The divergence illustrates how prolonged energy disruption weighs unevenly across the consumer base.

Nine of eleven S&P 500 sectors finished in positive territory. Industrials led with a 2.7% gain, followed by information technology at 2.2%.

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