U.S. stocks ended sharply higher on Wednesday, with the S&P 500 closing above the 7,300 mark for the first time, on hopes that the United States and Iran could reach a peace deal soon and robust earnings reports from a fresh batch of companies. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.2% or 612.34 points, to close at 49,910.59 points.
The S&P 500 added 1.5% to end at 7,365.12 points. Industrial and tech stocks were the biggest gainers.
The Industrials Select Sector SPDR (XLI) gained 2.6%. The Information Technology Select Sector SPDR (XLK) rose 2.7%. The Materials Select Sector SPDR (XLB) rose 1.7%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq advanced 2% to finish at 25,838.94 points.
The fear gauge, CBOE Volatility Index (VIX), was up 0.06% to 17.39. Advancers outnumbered decliners on the S&P 500 by a 1.7-to-1 ratio. A total of 18.8 billion shares were traded on Wednesday, higher than the last 20-session average of 17.6 billion.
On the Nasdaq, there were 186 new highs and 92 new lows. On the S&P 500, there were 46 new 52-week highs and 21 new lows.
Stocks Rally on Hopes of U.S.-Iran Deal
Iran on Wednesday said that it was reviewing the new proposal from the United States, while multiple sources claimed both nations were about to reach a deal and sign a one-page memorandum in a bid to end the ongoing conflict.
Bigger issues like Iran’s nuclear program will be decided later. Stocks rallied following the news but came off their highs after President Donald Trump said that the agreement was “not certain.”
However, investors mostly remained hopeful that the war would end soon, sending stocks on a rally. Oil prices fell further. The West Texas Intermediate futures fell 7.03%, to settle at $95.08 per barrel.
Also, robust earnings from a batch of tech companies lifted investors’ sentiment, further boosting the rally. Wednesday’s rally was driven by Advanced Micro Devices, Inc. (AMD), which reported an earnings beat. Advanced Micro Devices currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Advanced Micro Devices surged 18.6% after the company reported first-quarter 2026 earnings of $1.37 per share, which beat the Zacks Consensus Estimate of $1.30 per share.
Shares of The Kraft Heinz Company (KHC) rose 2.4% after the company reported first-quarter 2026 earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.5 per share.
Economic Data
Private payrolls increased to a 15-month high in April. Automatic Data Processing, Inc.’s (ADP) national employment report showed that private payrolls increased 109,000 in April, its biggest gain since January 2025. This follows a downwardly revised gain of 61,000 job additions in March.
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