The US stock market pushed to a fresh record high on Wednesday as easing US-Iran tensions pulled oil prices lower and AMD’s blowout AI chip earnings reignited the semiconductor rally.
The S&P 500 climbed 1.14%, the Nasdaq Composite jumped 1.51%, and the Dow Jones Industrial Average added 1.10%. A solid ADP private payrolls print reinforced the soft-landing narrative, with broad participation supporting the gains.
1. Iran Deal Proximity Pulled Oil Lower
The White House is reportedly nearing a one-page memorandum of understanding with Iran that would halt fighting and open nuclear talks, with Iran expected to respond within 48 hours.
The proposed terms include Iran pausing uranium enrichment, accepting UN inspections, and curbing underground sites in exchange for the US easing sanctions and releasing frozen assets.
Both sides would loosen Strait of Hormuz restrictions, opening a 30-day negotiation window. Trump has paused escalation, including plans for naval escorts through the Strait.
The deal proximity compressed crude oil prices, with Brent easing as traders priced in supply normalization. The move lifted risk assets broadly while pressuring energy names.
Lower oil prices also reduce inflationary pressure on consumer spending, which supported the broader equity bid.
2. AMD AI Chip Earnings Triggered a Semiconductor Rally
Advanced Micro Devices (AMD) jumped 16.29% to a record high after beating Q1 estimates and raising guidance. The chipmaker reported adjusted EPS of $1.37 on $10.25 billion in revenue, with revenue growing 38% year over year on strong data-center AI demand.
Management raised its Q2 outlook, signaling confidence that the AI buildout has further to run.
The print validated the thesis that AI chip spending is broadening beyond Nvidia, lifting semiconductor peers across the board. Super Micro Computer (SMCI) jumped 15.25%, Nvidia (NVDA) rose 4.31%, Lam Research (LRCX) gained 7.17%, Micron Technology (MU) added 2.77%, and Intel (INTC) climbed 2.40%.
That cluster alone drove most of the S&P 500’s advance.
3. ADP Jobs Report Reinforces Soft-Landing Narrative
The April ADP private payrolls report showed 109,000 jobs added, beating the consensus expectation of 84,000. The print supports the soft-landing thesis at a time when Fed officials are weighing the inflation impact of recent oil price volatility.
