Dow Surges 500 Points as Iran Deal Hopes Sink Oil; AMD Rockets 16%

CNBC reported Wednesday that U.S. equities surged broadly after news of advancing Iran-U.S. peace talks sent oil markets sharply lower and chipmaker AMD delivered a blowout earnings report.

The Dow Jones Industrial Average climbed 509 points, or 1.1%, by the open. The S&P 500 and Nasdaq Composite each added 0.6%, reaching fresh intraday milestones.

Iran Talks Rattle Energy Markets

Axios cited sources indicating the U.S. and Iran were approaching a resolution to their conflict. The reported framework included a halt to nuclear enrichment activities. An Iranian foreign ministry spokesperson separately confirmed to CNBC that Tehran was reviewing a U.S. proposal.

Oil prices fell sharply in response. West Texas Intermediate futures shed roughly 5%, settling above $96 per barrel. Brent crude slid a similar margin to trade just above $103.

President Donald Trump later tempered expectations, describing a deal as a “big assumption” and warning on Truth Social that military action would resume at greater intensity if negotiations collapsed. Stocks retreated modestly from their session highs following his remarks. Trump also announced a pause to “Project Freedom,” the U.S. initiative escorting vessels through the Strait of Hormuz, citing meaningful diplomatic progress.

AMD Drives Chipmaker Rally

Advanced Micro Devices CEO Lisa Su delivered results that beat analyst forecasts on both revenue and profit in the first quarter. The company also issued a stronger-than-expected revenue outlook for the second quarter, sending shares up 16%.

The gains rippled through the broader semiconductor space. The VanEck Semiconductor ETF climbed 3%, while Intel added more than 1%. Nvidia rose nearly 2%, aided additionally by a separate announcement of a manufacturing partnership with glassmaker Corning to build three optical fiber facilities across North Carolina and Texas. The project is expected to generate at least 3,000 jobs and expand Corning’s U.S. optical production capacity tenfold. Corning shares jumped 17%.

Labor Market Provides Additional Support

Also Read: Fed Holds Rates Steady as Inflation Uncertainty Persists

Private payroll data from ADP showed companies added 109,000 jobs in April, surpassing the consensus estimate of 84,000 and marking a significant recovery from March’s revised figure of 61,000. The stronger reading signals a resilient labor market but may reduce pressure on the Federal Reserve to cut interest rates in the near term.

Market Sentiment Remains Cautiously Bullish

Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, told CNBC that markets were “climbing a wall of worry.” She pointed to sustained AI-driven earnings upgrades as a meaningful cushion for S&P 500 profits, even amid geopolitical uncertainty. She stopped short of calling the rally overheated, but acknowledged gains are unlikely to remain linear.

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