The S&P 500 (^GSPC +1.18%) rose 1.46% to 7,365.12, the Nasdaq Composite (^IXIC +2.07%) jumped 2.02% to 25,838.94, and the Dow Jones Industrial Average (^DJI +0.59%) gained 1.24% to 49,910.59 as tumbling oil and AI strength lifted major indexes.
Market movers
Advanced Micro Devices (AMD +3.42%) surged more than 18% after a blowout AI-driven quarter and outlook, while Micron Technology (MU +0.90%) extended its gains, taking its market cap to over $750 billion. Corning (GLW +15.65%) jumped on a $500 million AI-infrastructure deal with Nvidia (NVDA +1.30%). Disney (DIS 0.12%) advanced on better-than-expected streaming- and parks-led results.
What this means for investors
Artificial intelligence (AI) demand and oil prices again drove markets today, Wednesday. Major indexes reached record highs on easing U.S.-Iran concerns and chip-driven optimism. WTI crude fell about 7% to close at $95 a barrel as hopes that the two sides might agree on a plan to reopen the Strait of Hormuz eased energy pressures.
The increased risk appetite buoyed semiconductor stocks, helped by AMD’s strong forecast and results. AMD isn’t alone: Some analysts predict this S&P 500 quarterly earnings season will be the strongest since 2021, despite conflict concerns. The S&P 500 has gained almost 8% so far this year, and the Nasdaq is up over 11%.
However, there are also correction fears, with commentators drawing parallels with the dot-com bubble and looking for confirmation that the soft-landing narrative remains intact. For investors, cautious optimism continues to reign.
